The Phillips Curve

Multiple Choice

The Phillips curve

A) holds that people's expectations of future inflation are based on their most recent experiences.
B) is the combination of high unemployment rates and high inflation.
C) holds that people form expectations on the basis of all available information.
D) involves the strategic use of monetary policy to counteract macroeconomic expansions and contractions.
E) indicates a short-run inverse relationship between inflation and unemployment rates.