The long-run Phillips curve is graphed as a
A)a straight line with a 45 degree slope.
B)curve that slopes downward to the right.
C)horizontal line at the expected level of inflation.
D)curve that slopes upward to the right.
E)vertical line at the natural unemployment rate.

Question

Quizplus · Accepted Answer

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

The Long-Run Phillips Curve Is Graphed as a