An Important Feature of the Inflation-Expectations Augmented Aggregate Supply Curve

Multiple Choice

An important feature of the inflation-expectations augmented aggregate supply curve is that

A) unemployment cannot increase as long as inflationary expectations remain constant
B) output will be above the full-employment level if actual prices are below expected prices
C) if actual prices are above expected prices, the real wage rate is too high to achieve full employment
D) the full-employment level of output is supplied if expected prices are equal to actual prices
E) all of the above