Ask Question
16 April, 18:21

If expected inflation rises, the long-run Phillips curve will

+1
Answers (1)
  1. 16 April, 18:36
    0
    Even though the Phillips curve is an empirical model has historically shown that the rate of unemployment and the rate inflation is inversely proportional, this is only observed in the short-run. In a graph, this is shown as non-linear.

    The Long-run Phillips curve, on the other hand, is linear. This means that there's no constant trade-off with regard to inflation & unemployment.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “If expected inflation rises, the long-run Phillips curve will ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers