In Terms of the Phillips Curve, the Experience of the 1970s

Multiple Choice

In terms of the Phillips curve, the experience of the 1970s indicates that macro-policy

A) can permanently reduce unemployment if we are willing to tolerate higher inflation.
B) can reduce unemployment in the long run if we are willing to tolerate higher inflation.
C) may be able to reduce unemployment but cannot retard inflation.
D) may be able to reduce unemployment in the short run, but there is little evidence that expansionary policies can reduce unemployment permanently.