Figure 16-2
-Refer to Figure 16-2. What is curve 1?
A)the long-run aggregate supply curve
B)the short-run aggregate supply curve
C)the long-run Phillips curve
D)the short-run Phillips curve

Question

Figure 16-2 
-Refer to Figure 16-2. What is curve 1?
A)the long-run aggregate supply curve 
B)the short-run aggregate supply curve 
C)the long-run Phillips curve 
D)the short-run Phillips curve

Quizplus · Accepted Answer

Curve 1 is the long-run Phillips curve, which is vertical, indicating no trade-off between inflation and unemployment in the long run.

Figure 16-2 -Refer to Figure 16-2. What Is Curve 1