All of the following are true along a long-run Phillips curve except one.Which is the exception?
A)unemployment is at the natural rate
B)employers and workers have the time and ability to adjust fully to unexpected changes in aggregate demand
C)the only choices for policy makers are different levels of inflation
D)inflation and unemployment are inversely related
E)changes in aggregate demand will have no effect in the long run on unemployment

Question

Quizplus · Accepted Answer

In the long-run Phillips curve, inflation and unemployment are not inversely related; instead, the curve is vertical, indicating no trade-off between inflation and unemployment in the long run.

All of the Following Are True Along a Long-Run Phillips