If the Economy Experiences an Unanticipated Demand Shock and Households

Multiple Choice

If the economy experiences an unanticipated demand shock and households and firms have rational expectations,there is

A) no trade-off between unemployment and inflation in either the short run or the long run.
B) a trade-off between unemployment and inflation in the long run, but not in the short run.
C) a trade-off between unemployment and inflation in the short run, but not in the long run.
D) a trade-off between unemployment and inflation in both the short run and the long run.