The natural rate hypothesis implies that the long-run Phillips curve will be:
A)downward-sloping.
B)upward-sloping.
C)vertical.
D)horizontal.

Name: The natural rate hypothesis implies that the long-run Phillips curve will be: A)downward-sloping. B)upward-sloping. C)vertical. D)horizontal.
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The natural rate hypothesis suggests that in the long run, there is no trade-off between inflation and unemployment, implying that the long-run Phillips curve is vertical at the natural rate of unemployment.

The Natural Rate Hypothesis Implies That the Long-Run Phillips Curve