-Refer to the above graph.The long-run relationship between the rate of inflation and the unemployment rate is represented by: A) the zigzag line connecting points B₁,C₁,B₂,C₂,B₃,C₃,and B₄. B) a line connecting points C₁,C₂,and C₃. C) a line connecting points B₁,B₂,B₃,and B₄. D) a line connecting points B₁ and C₁.

Question

Quizplus · Accepted Answer

The long-run relationship between inflation and unemployment is typically represented by the vertical long-run Phillips curve, which is shown by a line connecting points B₁, B₂, B₃, and B₄, indicating that in the long run, there is no trade-off between inflation and unemployment.

-Refer to the Above Graph