The position of the long-run Phillips curve depends on
A)the inflation rate and the natural rate of unemployment.
B)the inflation rate but not the natural rate of unemployment.
C)the natural rate of unemployment,but not the inflation rate.
D)neither the natural rate of unemployment nor the inflation rate.

Question

Quizplus · Accepted Answer

The long-run Phillips curve is vertical at the natural rate of unemployment, indicating that in the long run, there is no trade-off between inflation and unemployment. It is independent of the inflation rate.

The Position of the Long-Run Phillips Curve Depends on