The Long-Run Phillips Curve Indicates That

question 50

Multiple Choice

The long-run Phillips curve indicates that

• A) any inflation rate is possible at the natural unemployment rate.
• B) any unemployment rate is possible at the natural inflation rate.
• C) there is a tradeoff between the inflation rate and the unemployment rate in the long run.
• D) potential GDP can never be achieved.
• E) there is no way to control the inflation rate in the long run.

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