The Vertical Long-Run Phillips Curve

question 38

Multiple Choice

The vertical long-run Phillips curve

• A) implies that the Fed cannot influence the unemployment rate in the long run.
• B) implies that the Fed can influence the unemployment rate in the long run.
• C) implies that the Fed can influence both the unemployment rate and the inflation rate in the long run.
• D) implies that the Fed can reduce the unemployment rate in the long run only at the expense of higher inflation rate.
• E) none of the above.