Economists who argue that the AS curve is vertical in the long run at potential output also argue that in the long run, the ________ is vertical at the natural rate of unemployment.

Question

Quizplus · Accepted Answer

Economists who believe in the vertical AS curve in the long run also believe in the natural rate of unemployment, which is the rate at which the economy produces its potential output. This implies that any attempt to push unemployment below the natural rate in the short run will only lead to higher inflation in the long run, confirming the vertical Phillips curve.

Economists Who Argue That the AS Curve Is Vertical in the Long