If Inflation Increases Under Conditions of Static Expectations of Inflation

Multiple Choice

If inflation increases under conditions of static expectations of inflation,

A) the Phillips curve will shift to the right, further exacerbating the inflation problem.
B) the Phillips curve will shift to the left, improving the inflation-unemployment situation.
C) the Phillips curve will remain in place and unemployment will decrease.
D) the monetary policy reaction function will shift to the right.