Which of the Following Is One Implication of the Phillips

Multiple Choice

Which of the following is one implication of the Phillips curve analysis?  

A)  Unemployment rates below the natural rate are possible only in the long run. 
B)  Unemployment rates below the natural rate lead to falling rates of inflation in the long run. 
C)  Unemployment rates below the natural rate may be achieved only with rising inflation rates. 
D)  The natural rate of unemployment is strictly a short-run phenomenon.