According to Friedman and Phelps,the long-run Phillips curve is
A) horizontal.
B) vertical.
C) downward sloping from left to right.
D) first upward, then downward sloping from left to right.
E) shifting upward and out from the origin.

Question

Quizplus · Accepted Answer

According to Friedman and Phelps, the long-run Phillips curve is vertical, meaning that there is no trade-off between inflation and unemployment in the long run. This is because in the long run, expectations of inflation adjust and workers and firms adjust their behavior accordingly, resulting in a natural rate of unemployment that is independent of the inflation rate.

According to Friedman and Phelps,the Long-Run Phillips Curve Is