Consider the Following Canadian Data

Multiple Choice

Consider the following Canadian data. Year Inflation rate Unemployment rate
1991 5.60% 10.4%
1992 1.50% 11.3%
1993 1.80% 11.2%
1994 0.20% 10.4%
1995 2.15% 9.5%
1996 1.58% 9.7%
The data suggest

A) no inflation-unemployment relationship
B) an inward shift of the Phillips Curve beginning in 1994
C) an outward shift of the Phillips Curve beginning in 1995
D) a vertical long run Phillips Curve
E) an upward-sloping Phillips Curve