If Inflation Targeting Were Abandoned and Instead the Government Set

Multiple Choice

If inflation targeting were abandoned and instead the government set about a concerted policy of expanding aggregate demand to reduce unemployment, the Phillips curve would become

A) vertical in the short term and downward- sloping in the long term.
B) vertical in the short term and horizontal in the long term.
C) downward- sloping in both the short and long term.
D) downward- sloping in the short term and vertical in the long term.
E) vertical in both the short and long term.