Along the long-run Phillips curve
A) actual inflation is greater than expected inflation.
B) actual inflation is equal to expected inflation.
C) actual inflation is less than expected inflation.
D) None of the above answers is correct.

Question

Quizplus · Accepted Answer

Along the long-run Phillips curve, actual inflation is equal to expected inflation, indicating that in the long run, there is no trade-off between inflation and unemployment.

Along the Long-Run Phillips Curve