If the Long-Run Aggregate Supply Curve Is Vertical

question 121

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 change in the unemployment rate must be permanent.