Final answer:
The PS relation in a graph with a real wage on the Y-axis and the employment level on the X-axis, in the neoclassical long-run perspective, would be a vertical line, analogous to the vertical long-run Phillips curve which indicates no tradeoff between inflation and unemployment.
Step-by-step explanation:
Inquiring about the determinants of the equilibrium real wage and employment level N, and specifically the nature of the PS relation on a graph with real wage on the Y-axis and employment level on the X-axis, we refer to economic theories. The Keynesian perspective suggests that there is a short-run tradeoff between inflation and unemployment, resulting in a downward sloping Phillips curve.
Conversely, the neoclassical perspective would assert that the long-run aggregate supply curve is vertical, implying no long-run tradeoff, and therefore, a vertical Phillips curve. When considering a vertical long-run aggregate supply curve, changes in aggregate demand do not affect the level of output but do lead to changes in the price level. As the level of output remains constant, the natural rate of unemployment does not change. Thus, should the natural rate of unemployment be 5%, the long-run Phillips curve would be a vertical line at this 5% unemployment level, regardless of inflation rates. Therefore, the PS relation referred to in the question is an analogy to the long-run Phillips curve, implying that it would have a similar vertical configuration.