In face of rational expectations regarding changes in monetary policy,the short-run Phillips Curve may be vertical.

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Rational expectations assume that individuals and firms have perfect information and adjust their expectations accordingly. This means that if the central bank changes its monetary policy, people will anticipate the change and adjust their behavior accordingly. As a result, the short-run Phillips Curve could become vertical, meaning that there is no trade-off between inflation and unemployment in the short run.

In Face of Rational Expectations Regarding Changes in Monetary Policy,the