Stagflation, That Is, High Unemployment Combined with High Inflation

Multiple Choice

Stagflation, that is, high unemployment combined with high inflation

A) cannot persist, since the economy eventually will return to full employment
B) can only occur if expansionary monetary policy is combined with restrictive fiscal policy
C) is inconsistent with the inflation-expectations-augmented Phillips curve
D) cannot occur as long as the expected inflation rate is above the actual inflation rate
E) none of the above