In the monetarist view, the long-run phillips curve
a. horizontal.
b. downward sloping.
c. downward sloping but steeper than the short-run curve.
d. downward sloping but flatter than the short-run curve.
e. none of the above.

The correct answer is option E.

Explanation:

The Philips curve shows the inverse relationship between inflation and unemployment. The Philips curve, in the short run, is downward sloping L shaped indicating this inverse relationship.

But according to economists, in the long run, there is no trade-off between inflation rate and unemployment. The inflation and unemployment are related in the short run, they are not related in the long run.

The long-run Phillips curve is a vertical line at the point of the natural rate of unemployment.

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