Explain the relationship between inflation and unemployment according to the long-run Phillips Curve.?
There is no relation between inflation and unemployment in the
long run because there is a vertical line in the long-run Phillips
curve at the natural rate of unemployment. There is no swap between
inflation and unemployment as per economists.
There is no relationship between inflation and unemployment in the
long run. A vertical line is shown on the Phillips curve at the
natural rate of unemployment. Endeavor to change rates of
unemployment only helps the economy to move up and down this
vertical line.
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