The long-run Phillips curve shows the relationship between
A) the price level and real GDP in the long run.
B) the price level and unemployment in the long run.
C) inflation and unemployment when expected inflation equals the actual inflation.
D) inflation and unemployment when expected inflation does not change.

Question

Quizplus · Accepted Answer

The long-run Phillips curve illustrates the relationship between inflation and unemployment when expected inflation equals actual inflation, indicating no long-term trade-off between inflation and unemployment.

The Long-Run Phillips Curve Shows the Relationship Between