One Implication of the Phillips Curve Analysis Is That

question 101

Multiple Choice

One implication of the Phillips curve analysis is that:

• A)unemployment rates below the natural rate are only possible in the long run.
• B)unemployment rates below the natural rate lead to falling rates of inflation in the long run.
• C)if inflationary expectations are accurate,the economy is on the short-run Phillips curve but not on the long-run Phillips curve.
• D)unemployment rates below the natural rate may be achieved only with rising inflation rates.
• E)the natural rate of unemployment is strictly a short-run phenomenon.