In the long run,there is a no tradeoff between inflation and unemployment.

Question

Quizplus · Accepted Answer

This is a concept known as the Phillips curve, which suggests that there is an inverse relationship between inflation and unemployment in the short run. However, in the long run, this relationship is not always observed and there is no tradeoff between the two variables. In the long run, inflation is determined by the growth rate of the money supply, while unemployment is determined by factors such as technological progress, demographics, and labor market institutions.

In the Long Run,there Is a No Tradeoff Between Inflation