The Figure Given Below Represents the New Classical Long Run

Multiple Choice

The figure given below represents the new classical long run and short run Phillips curve measuring inflation rate on vertical axis and unemployment rate on horizontal axis.
Figure 15.2

-Refer to Figure 15.2. Assume that the government adopted an unexpected expansionary monetary policy that has the economy currently at point D. If people expect that this inflation rate will persist next year, the economy will now:

A) move to point A.
B) move to point B.
C) move to point C.
D) move to point E.
E) remain at point D.