In the long run,the Phillips curve is a ________ at ________.

Question

Quizplus · Accepted Answer

In the long run, the Phillips curve is a vertical line at the natural rate of unemployment. This is because in the long run, changes in inflation have no effect on the actual rate of unemployment, which is determined by factors such as demographics, technological change, and institutional factors in the labor market. Therefore, any increase or decrease in aggregate demand that leads to higher or lower inflation in the short run will only be temporary, and in the long run, the economy will return to its natural rate of unemployment with no effect on the rate of inflation.

In the Long Run,the Phillips Curve Is a ________ at ________

In the Long Run,the Phillips Curve Is a at