Expectations of Steady Inflation and Staggered Wage and Price Setting

Multiple Choice

Expectations of steady inflation and staggered wage and price setting are two reasons why

A) the IA line is usually upward-sloping.
B) inflation is highly variable during the short run.
C) inflation does not change very much in the short run.
D) inflation changes immediately after a change in real GDP.
E) the IA line is usually downward-sloping.