In the context of the Long Run Phillips Curve, when the economy reaches its _____ rate of unemployment, there is no trade-off between inflation and unemployment, implying stable inflation levels over time.

In the context of the Long Run Phillips Curve, when the economy reaches its natural rate of unemployment, there is no trade-off between inflation and unemployment. This means that at this natural rate, inflation tends to remain stable regardless of how low or high the unemployment rate is. The natural rate of unemployment reflects the level of unemployment that exists when the economy is healthy, taking into account factors like job seekers and job vacancies. For example, if an economy is at this natural rate, even if companies create more jobs and hire more people, it won’t necessarily lead to higher inflation because the economy is balanced. Thus, in the long run, the focus shifts from managing inflation and unemployment together to maintaining this stable level of unemployment for overall economic health.