EconomicsMultiple Choice

The long-run Phillips curve is a result of eventual changes and shifts in the short-run Phillips curve. As a result, what does this make the long-run Phillips curve look like?

✨ Quizard's Answer

Asked by 2 other people

A
perfectly vertical

Explanation:

The long-run Phillips curve is a theoretical concept that shows the relationship between inflation and unemployment in the long run. It is based on the idea that in the long run, the economy will adjust to changes in inflation and unemployment, and the short-run Phillips curve will shift accordingly. As a result, the long-run Phillips curve is usually depicted as a vertical line, indicating that there is no trade-off between inflation and unemployment in the long run. This means that changes in the rate of inflation will not have any effect on the rate of unemployment in the long run. Therefore, the correct answer is A.

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