Which of the Following Is Part of the Modern View

Multiple Choice

Which of the following is part of the modern view of the Phillips curve?

A) When inflation exceeds what was anticipated, unemployment falls below the natural rate.
B) When inflation is less than anticipated, unemployment will rise above the natural rate.
C) Demand stimulus policies can temporarily reduce unemployment, but in the long run, their primary impact will be on prices (inflation) .
D) All of the above are correct.