A government implements a policy to reduce inflation by increasing interest rates. In the context of the Long Run Phillips Curve, what is the likely outcome for unemployment in the long run?

When a government raises interest rates to reduce inflation, it generally slows down economic growth. According to the Long Run Phillips Curve, there is no trade-off between inflation and unemployment in the long run. This means that while inflation might decrease, the unemployment rate will eventually return to its natural level, which is determined by factors like labor market policies and skills of the workforce. For example, if interest rates are raised and businesses invest less, it could lead to job losses at first, but over time, the unemployment rate will stabilize at a level that reflects the economy's potential. Ultimately, the long-run outcome shows that higher interest rates can help control inflation without permanently affecting unemployment.