The Long-Run Phillips Curve Is a

question 69

Multiple Choice

The long-run Phillips curve is a

• A) horizontal line indicating a positive relationship between inflation and unemployment.
• B) vertical line indicating a positive relationship between inflation and unemployment.
• C) vertical line that shows the relationship between inflation and unemployment when the economy is at full employment.
• D) horizontal line that shows the relationship between inflation and unemployment when the economy is at full employment.
• E) straight line with a 45 degree slope showing the long-run relationship between the inflation rate and the expected inflation rate.