Economics Phillips Curve Questions
The long-run Phillips Curve is a vertical line that represents the relationship between inflation and unemployment in the long run. It suggests that there is no trade-off between inflation and unemployment in the long run, meaning that changes in the inflation rate do not have a lasting impact on the unemployment rate. This is because in the long run, the economy adjusts to its natural rate of unemployment, which is determined by structural factors such as labor market conditions, technology, and institutions.