The Phillips Curve Shows

Multiple Choice

The Phillips curve shows

A) a positive relationship in the long run between the rate of inflation and the rate of unemployment.
B) a negative relationship between the inflation rate and the unemployment rate, at least in the short run.
C) a positive relationship between contractionary monetary policy and higher price levels.
D) a positive relationship between price stability and constant, small-increment changes in the fiscal policy on the part of the Fed.