The short- run Phillips curve intersects the long- run Phillips curve at the
A) natural interest rate.
B) natural inflation rate.
C) nominal interest rate.
D) expected inflation rate.

Question

Quizplus · Accepted Answer

The short-run Phillips curve intersects the long-run Phillips curve at the expected inflation rate, where actual inflation equals expected inflation, and unemployment is at its natural rate.

The Short- Run Phillips Curve Intersects the Long- Run Phillips