In the long run, the Phillips curve will be vertical at the natural rate of unemployment if ?

A. the long-run aggregate demand curve is horizontal at the natural rate of inflation
B. the long run aggregate demand curve is vertical at potential GDP
C. the long run aggregate demand curve is vertical at potential GDP
D. The long run supply curve is horizontal at the natural rate of inflation

Correct Answer: the long run aggregate demand curve is vertical at potential GDP ✔

Last Updated: June 11, 2019