Just as the aggregate-supply curve slopes upward only in the short run, the trade-off between inflation and unemployment holds only in the short run.

Question

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The Phillips Curve illustrates the trade-off between inflation and unemployment, suggesting that lower unemployment can come at the cost of higher inflation, and vice versa, but this relationship primarily holds in the short run. In the long run, expectations adjust, making the long-run Phillips Curve vertical, indicating no trade-off between inflation and unemployment.

Just as the Aggregate-Supply Curve Slopes Upward Only in the Short