Under Conditions of Rational Expectations of Inflation

Multiple Choice

Under conditions of rational expectations of inflation,

A) the Phillips curve will eventually shift to the right if the economy is expending and inflation is increasing.
B) the Phillips curve will shift to the left if the economy is expanding and inflation is increasing.
C) the Phillips curve will remain in place and unemployment will decrease if the economy is expanding
And inflation is increasing.
D) the Phillips curve will shift as rapidly as, or faster than, changes in economic policy that affect the level of aggregate demand.