According to the Phillips Curve, Inflation Depends on Expected Inflation

Multiple Choice

According to the Phillips curve, inflation depends on expected inflation because:

A) the real interest rate depends on the expected rate of inflation.
B) the central bank sets its target inflation rate based on the expected rate of inflation.
C) the natural level of output depends on the expected rate of inflation.
D) when some firms set prices in advance, expected inflation influences future prices.