The expectations-augmented Phillips curve concludes that ________.
A)there is a long-run but not a short-run tradeoff between unemployment and inflation
B)there is a short-run but not a long-run tradeoff between unemployment and inflation
C)there is both a short-run and not a long-run tradeoff between unemployment and inflation
D)there is neither a short-run nor a long-run tradeoff between unemployment and inflation

Question

Quizplus · Accepted Answer

The expectations-augmented Phillips curve suggests that there is a short-run tradeoff between unemployment and inflation, but in the long run, expectations adjust, and the tradeoff disappears.

The Expectations-Augmented Phillips Curve Concludes That ________