The long-run Phillips curve has __________ on the x axis and __________ on the y axis.
A) unemployment; inflation
B) inflation; unemployment
C) real gross domestic product (GDP); price level
D) price level; real GDP
E) real GPD; inflation

Question

Quizplus · Accepted Answer

The long-run Phillips curve shows the relationship between inflation and unemployment in the long run. In the long run, the Phillips curve is vertical, meaning that there is no trade-off between inflation and unemployment.

The Long-Run Phillips Curve Has __________ on the X Axis