Both Milton Friedman and Edmund Phelps argued that if the long-run aggregate supply curve was vertical, then the slope of the long-run Phillips curve must be:
A)negative.
B)positive.
C)infinite.
D)zero.

Question

Quizplus · Accepted Answer

Milton Friedman and Edmund Phelps argued that in the long run, there is no trade-off between inflation and unemployment, implying that the long-run Phillips curve is vertical. A vertical Phillips curve corresponds to an infinite slope, as it reflects that changes in inflation do not affect unemployment in the long run.

Both Milton Friedman and Edmund Phelps Argued That If the Long-Run