-The long-run Phillips curve is the relationship between
A) unemployment and the price level at full employment.
B) unemployment and the inflation rate at the expected price level.
C) inflation and real GDP at full employment.
D) inflation and unemployment when the economy is at full employment.
E) inflation and the expected inflation rate.

Question

-The long-run Phillips curve is the relationship between
A) unemployment and the price level at full employment. 
B) unemployment and the inflation rate at the expected price level. 
C) inflation and real GDP at full employment. 
D) inflation and unemployment when the economy is at full employment. 
E) inflation and the expected inflation rate.

Quizplus · Accepted Answer

The long-run Phillips curve illustrates the relationship between inflation and unemployment when the economy is at full employment, showing that there is no trade-off between inflation and unemployment in the long run.

-The Long-Run Phillips Curve Is the Relationship Between