The Newer View of the Phillips Curve Implies That

Multiple Choice

The newer view of the Phillips curve implies that

A) the natural rate of unemployment can be reduced by expansionary monetary policy
B) in the long run unemployment does not move towards a natural rate if there is frictional unemployment
C) an increase in monetary growth affects unemployment and inflation in the short run, but only affects inflation in the long run
D) there is a clear inverse relationship between unemployment and output
E) stagflation can best be addressed by implementing expansionary fiscal policies