If the Long-Run Aggregate Supply Curve Is Vertical

question 7

Multiple Choice

If the long-run aggregate supply curve is vertical,

• A)the economy stays at the natural rate of inflation in the long run.
• B)the short-run Phillips curve must be vertical.
• C)unemployment and inflation are positively related in the long run.
• D)the trade-off between unemployment and inflation cannot be permanent.
• E)any changes in the unemployment rate will be permanent.

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