According to the Expectations-Augmented Phillips Curve Model,the Amount by Which

Multiple Choice

According to the expectations-augmented Phillips curve model,the amount by which contractionary policies can lower the inflation rate for every one percent increase in the unemployment rate along a short-run Phillips curve,will hold only as long as private sector's expectations of inflation remains unchanged.When circumstances change and the public revise their expectations of inflation downward,the ___________ will shift ___________ and the rate of trade-off between unemployment and inflation will ___________.

A) long-run Phillips curve;down;improve
B) short-run Phillips curve;up;worsen
C) long-run Phillips curve;up;worsen
D) short-run Phillips curve;down;improve
E) long-run Phillips curve;up;improve