If the Level of Unemployment Is Below the Natural Rate

Multiple Choice

If the level of unemployment is below the natural rate of unemployment, it would be expected that:

A) ​the short-run Phillips curve will shift leftward, as inflationary expectations adjust.
B) ​the inflation rate will increase.
C) ​the inflation rate will decrease.
D) ​the long-run Phillips curve will shift rightward, as inflationary expectations adjust.