-The long-run Phillips curve is
A) upward sloping.
B) downward sloping.
C) horizontal.
D) vertical.
E) upside-down U-shaped

Question

-The long-run Phillips curve is
A) upward sloping. 
B) downward sloping. 
C) horizontal. 
D) vertical. 
E) upside-down U-shaped

Quizplus · Accepted Answer

The long-run Phillips curve is vertical, indicating that there is no trade-off between inflation and unemployment in the long run. This reflects the idea that in the long run, the economy operates at its natural rate of unemployment, regardless of the inflation rate.

-The Long-Run Phillips Curve Is