The ________ curves are both vertical.

Name: The ________ curves are both vertical.
Brand: Quizplus
Rating: 4.9 (47 reviews)

Question

Quizplus · Accepted Answer

The long-run aggregate supply curve is vertical because it represents a time period in which output is determined by the factors of production and technology, not by the price level. The long-run Phillips curve is also vertical, reflecting the idea 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 ________ Curves Are Both Vertical