The Modern View of the Phillips Curve Indicates That Expansionary

Multiple Choice

The modern view of the Phillips curve indicates that expansionary macroeconomic policy

A) will reduce the unemployment rate if policy makers are willing to accept the required rate of inflation.
B) will reduce the unemployment rate only when people underestimate the inflationary effects of the expansionary policy.
C) will reduce the unemployment rate only when people overestimate the inflationary effects of the expansionary policy.
D) will reduce the unemployment rate if people accurately anticipate the inflationary effects of the expansionary policy.