Asked by Shalonda Lyons on Jul 04, 2024
Verified
Along the long-run Phillips curve,the economy is at an unemployment level that corresponds to an output level lower than the potential output level.
Long-run Phillips Curve
The long-run Phillips Curve is an economic concept that illustrates the relationship between inflation and unemployment, suggesting that in the long run there is no trade-off between these two factors.
Potential Output
The upper limit of real GDP sustainable over an extended period without inflating the inflation rate.
- Acquire knowledge on the impacts of the Phillips Curve, particularly distinguishing its short-term and long-term components.
Verified Answer
GB
Gurpriya BansiJul 10, 2024
Final Answer :
False
Explanation :
Along the long-run Phillips curve, the economy is at its natural rate of unemployment, which corresponds to the potential output level, not lower than it.
Learning Objectives
- Acquire knowledge on the impacts of the Phillips Curve, particularly distinguishing its short-term and long-term components.
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