If Workers Fail to Believe That Rising Inflation Will Eventually

Multiple Choice

If workers fail to believe that rising inflation will eventually result in comparable increases in wages, but firms do understand this, then there is a:

A) negative relationship between unemployment and inflation in the short run.
B) positive relationship between unemployment and inflation in the short run.
C) negative relationship between unemployment and inflation in the long run.
D) positive relationship between unemployment and inflation in the long run.