Consider the U

Multiple Choice

Consider the U.S. data for inflation and the unemployment rate for the last four decades. Which of the following statements describes the relationship between the two variables?

A) Several different short- run Phillips curves representing different natural unemployment rates and different expected inflation rates existed.
B) There is a positive relationship.
C) The natural unemployment rate did not change but the expected inflation rate did change over these years.
D) None of the above answers is correct.