The Inflation-Expectations-Augmented Phillips Curve Implies That

Multiple Choice

The inflation-expectations-augmented Phillips curve implies that

A) unemployment is at its natural rate when expected inflation is equal to actual inflation
B) stagflation occurs when expected inflation is below actual inflation
C) stagflation occurs when the short-run Phillips curve shifts left
D) the inflation rate is equal to the real output growth rate plus the monetary growth rate
E) the expected inflation rate is always equal to the monetary growth rate