1 1 unread reply. 1 1 reply. image.pngThe previous chapter introduced the Phillips curve from a Keynesian perspective, and in that section, we saw a tradeoff between inflation and unemployment. When we look at this from a long-run, Neoclassical perspective in Section 2, we see the Phillips curve become vertical, indicating no relation between unemployment and inflation. image.png When we look at this from a long-run, Neoclassical perspective in Section 2, we see the Phillips curve become vertical, indicating no relation between unemployment and inflation. In this discussion, your task is to: Explain why we see this difference in the short- and long-run, and create a practical example to illustrate this difference Explain an advantage of thinking in the long runWe see the difference on the neoclassical perspective because it shows that when there is a 5% unemployment rate it is steady at that percentage with a 100% vertical y-axis rise in inflation. When you're thinking in the long run it can really help you plan in the future of what to go over. Thinking in the long run might be to your advantage