The Short-Run Phillips Curve Shows That

Multiple Choice

The short-run Phillips curve shows that:

A) the economy can have low inflation and low unemployment simultaneously.
B) the economy can have high per-capita income and high interest rate simultaneously.
C) a reduction in per-capita income comes at the expense of lower inflation.
D) a reduction in unemployment comes at the expense of higher inflation.
E) a reduction in inflation comes at the expense of lower exchange rate.