If marginal revenue exceeds marginal cost in the short run, the perfectly competitive firm earns an economic profit in the short-run

When the natural unemployment rate changes, what happens to the short-run Phillips curve? To the long-run Phillips curve?

What will be an ideal response?

In the long run, an increase in productivity would cause output to ________ and the aggregate price level to ________

A) fall; rise B) fall; fall C) rise; fall D) rise; rise