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Mashcka [7]
4 years ago
8

Only the short-run Phillips curve is downward sloping because: a in the long run, prices adjust, eliminating the relationship be

tween inflation and unemployment. b central banks only have influence over the economy in the long run. c central banks have no influence over the economy in the short run. d in the long run, prices are sticky, eliminating the relationship between inflation and unemployment. e long-run effects of monetary policy are negated by fiscal policy.
Business
1 answer:
AysviL [449]4 years ago
6 0

Answer:

a in the long run, prices adjust, eliminating the relationship between inflation and unemployment

Explanation:

Philip's curve states that there is an inverse relationship between inflation and unemployment in the short run. However, in the long run, workers and consumers adapt to the new environment.

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