Question

The long-run Phillips curve: depicts the negative relationship between the unemployment rate and the inflation rate. explains how expansionary policies can affect an economy, while contractionary policies have little effect. shows the positive relationship between the unemployment rate and the inflation rate. suggests that policies have little effect on the natural rate of unemployment in the long run.

Answer 1

Answer: Suggests that policies have little effect on the natural rate of unemployment in the long run.

Explanation:

The Long Run Phillips Curve as you can see in the graph attached is a VERTICAL straight line. It suggests that policies can change inflation but will not have much of an impact on the rate of Unemployment as Unemployment will be at it's Natural Rate.