The short-run Phillips curve is ________ and the long-run Phillips curve is ________.
A) upward sloping; vertical
B) vertical; upward sloping
C) vertical; downward sloping
D) downward sloping; vertical
E) downward sloping; downward sloping

Question

Quizplus · Accepted Answer

The short-run Phillips curve is downward sloping, indicating an inverse relationship between inflation and unemployment. In the long run, the Phillips curve is vertical, suggesting no trade-off between inflation and unemployment.

The Short-Run Phillips Curve Is ________ and the Long-Run Phillips