Asked by Giansa Viola on Jun 26, 2024
Verified
Some economists believe that in the long run,the unemployment rate is independent of the inflation rate and so the Phillips curve becomes a vertical line.
Long Run
A period in economics where all inputs can be adjusted, and companies can change all factors of production.
Phillips Curve
An economic model suggesting an inverse relationship between rates of unemployment and corresponding rates of inflation.
Unemployment Rate
The percentage of the labor force that is jobless and actively seeking employment within an economy.
- Attain an understanding of the repercussions of the Phillips Curve, with an emphasis on differentiating its transient and enduring aspects.
Verified Answer
Learning Objectives
- Attain an understanding of the repercussions of the Phillips Curve, with an emphasis on differentiating its transient and enduring aspects.
Related questions
The Long-Run Phillips Curve Is Located at the Natural Rate ...
In Its Original Form,the Phillips Curve Depicted a Situation in ...
Along the Long-Run Phillips Curve,the Economy Is at an Unemployment ...
In the Friedman-Phelps Analysis, When Inflation Is Less Than Expected ...
According to the Long-Run Phillips Curve, If the Fed Increases ...