The long-run aggregate supply curve is ________, while the long-run Phillips curve is ________.

Question

Quizplus · Accepted Answer

The long-run aggregate supply curve is vertical, indicating that in the long run, the total production of an economy is not affected by the price level. The long-run Phillips curve is also vertical, showing that in the long run, there is no trade-off between inflation and unemployment; the economy operates at the natural rate of unemployment regardless of inflation.

The Long-Run Aggregate Supply Curve Is ________, While the Long-Run