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The Long-Run Phillips Curve Is a Vertical Line Because

Question 5

Multiple Choice

The long-run Phillips curve is a vertical line because


A) the unemployment rate decreases when the inflation rate increases.
B) there is no relationship between the natural unemployment rate and the inflation rate.
C) the natural unemployment rate only depends on the inflation rate.
D) real GDP does not depend on the unemployment rate.
E) in the long run, the natural unemployment rate increases when inflation increases.

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