An Inverse Relationship Between Unemployment and Inflation Arises

Multiple Choice

An inverse relationship between unemployment and inflation arises

A) as a mathematical definition, regardless of economic events
B) when technological shocks are the primary force of change in the economy and wage adjustments are rapid
C) when shifts in aggregate demand cause most of the fluctuations in the economy, and wages are sluggish
D) when aggregate demand is stable while aggregate supply is shifting
E) in the long run but not in the short run