The Long-Run Phillips Curve Suggests That

Multiple Choice

The long-run Phillips curve suggests that:

A) a fall in in?ationary expectations will lead to an increase in nominal wages.
B) there is a trade-off between unemployment and in?ation.
C) unemployment is constant in the long run, irrespective of the rate of in?ation.
D) ?scal policy is an effective tool in increasing the level of employment in the long run.