What is the shape of the long-run Phillips curve?
A) horizontal
B) vertical
C) upward sloping
D) downward sloping

Name: What is the shape of the long-run Phillips curve? A) horizontal B) vertical C) upward sloping D) downward sloping
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Question

What is the shape of the long-run Phillips curve?  
A) horizontal 
B) vertical 
C) upward sloping 
D) downward sloping

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 means that changes in the unemployment rate have no effect on the inflation rate in the long run.

What Is the Shape of the Long-Run Phillips Curve