1362EconomicsMedium
In the long run, the Phillips curve will be vertical at the natural rate of unemployment if?
Athe long run aggregate demand curve is vertical at potential GDP
BThe long run supply curve is horizontal at the natural rate of inflation
Cthe long-run aggregate demand curve is horizontal at the natural rate of inflation
Correct answer
A. the long run aggregate demand curve is vertical at potential GDP
Explanation
The correct answer is the long run aggregate demand curve is vertical at potential GDP.