Question

A policy that changes the natural rate of unemployment changes: a. neither the long-run Phillips curve nor the long-run aggregate supply curve. b. the long-run Phillips curve, but not the long-run aggregate supply curve. c. the long-run aggregate supply curve, but not the long-run Phillips curve. d. both the long-run Phillips curve and the long-run aggregate supply curve.

Answer 1

Answer:

d. both the long-run Phillips curve and the long-run aggregate supply curve.

Explanation:

the long run Phillips curve is a vertical line that represents the natural rate of unemployment, therefore, a change in the natural rate of unemployment will shift the curve.

The long run aggregate supply curve is also a vertical line that shows potential GDP, and a change in the natural rate of unemployment will shift it.