The Short-Run Phillips Curve Shows Only a Short-Run Tradeoff Between

Multiple Choice

The short-run Phillips curve shows only a short-run tradeoff between the unemployment rate and the inflation rate because in the long run the

A) natural unemployment rate increases.
B) expected inflation rate increases.
C) unemployment rate returns to the natural unemployment rate and so there is no long-run tradeoff between the inflation rate and the unemployment rate.
D) inflation rate returns to the natural inflation rate and so there is no long-run tradeoff between the inflation rate and the unemployment rate.
E) inflation rate returns to the natural inflation rate and the unemployment rate returns to the natural unemployment rate.