The long-run Phillips curve shows the relationship between the ________ and the ________ when there is no ________ unemployment.
A) inflation rate; unemployment rate; cyclical
B) inflation rate; unemployment rate; structural
C) inflation rate; employment rate; seasonal
D) nominal interest rate; real interest rate; frictional
E) nominal interest rate; unemployment rate; cyclical

Question

Quizplus · Accepted Answer

The long-run Phillips curve illustrates the relationship between the inflation rate and the unemployment rate when there is no cyclical unemployment, indicating that the economy is at its natural rate of unemployment.

The Long-Run Phillips Curve Shows the Relationship Between the ________