Evidence Over Time Indicates That the Relationship Depicted in the Simple

Multiple Choice

Evidence over time indicates that the relationship depicted in the simple Phillips curve holds true only if policymakers:

A) aggressively pursue countercyclical solutions to inflation and unemployment problems.
B) do nothing to take advantage of the positive relationship on the graph.
C) do nothing to take advantage of the negative relationship on the graph.
D) realize that output cannot stabilize at the natural rate of unemployment.