the long - run phillips curve shows\n\na) an inverse relationship between unemployment and inflation…

the long - run phillips curve shows\n\na) an inverse relationship between unemployment and inflation rates\n\nb) a direct relationship between unemployment and inflation rates\n\nc) no relationship between unemployment and inflation rates\n\nd) no relationship between price level and long - run output\n\ne) a direct relationship between price level and long - run output

the long - run phillips curve shows\n\na) an inverse relationship between unemployment and inflation rates\n\nb) a direct relationship between unemployment and inflation rates\n\nc) no relationship between unemployment and inflation rates\n\nd) no relationship between price level and long - run output\n\ne) a direct relationship between price level and long - run output

Answer

Brief Explanations:

In the long - run, the Phillips Curve is vertical at the natural rate of unemployment. This implies that in the long - run, there is no trade - off (i.e., no relationship) between the unemployment rate and the inflation rate. Workers adjust their expectations of inflation in the long - run, and changes in the price level do not affect real economic variables like unemployment.

Answer:

C. no relationship between unemployment and inflation rates