Asked by Yasmin Gallegos on Jul 01, 2024
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The long-run Phillips curve is located at the natural rate of unemployment.
Long-run Phillips Curve
A graphical representation showing the relationship between inflation and unemployment when inflation expectations are fully adjusted to actual inflation.
Natural Rate
The long-term unemployment rate that is observed once the effect of short-term cyclical factors has been removed, considered to be the rate of unemployment consistent with a stable rate of inflation.
- Absorb the significance of the Phillips Curve, especially highlighting the contrast between its short-duration and long-duration implications.
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Learning Objectives
- Absorb the significance of the Phillips Curve, especially highlighting the contrast between its short-duration and long-duration implications.
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