Which of the following best describes the long-run Phillips curve?
A) It is vertical.
B) It is horizontal.
C) It slopes upward.
D) It slopes downward.

Question

Which of the following best describes the long-run Phillips curve?  
A) It is vertical. 
B) It is horizontal. 
C) It slopes upward. 
D) It slopes downward.

Quizplus · Accepted Answer

The long-run Phillips curve is vertical, meaning that there is no trade-off between inflation and unemployment in the long run. This is because in the long run, the economy will always return to its natural rate of unemployment, regardless of the level of inflation.

Which of the Following Best Describes the Long-Run Phillips Curve