If the natural rate hypothesis is accepted, then the Phillips curve would:
A) have a positive slope.
B) have a negative slope.
C) be a horizontal line.
D) be a vertical line.

Question

Quizplus · Accepted Answer

The natural rate hypothesis suggests that in the long run, there is no trade-off between inflation and unemployment, implying that the Phillips curve would be a vertical line at the natural rate of unemployment.

If the Natural Rate Hypothesis Is Accepted, Then the Phillips