Workers Resist Wage Decreases More Vigorously Than They Resist Wage

Multiple Choice

Workers resist wage decreases more vigorously than they resist wage increases.This phenomenon makes the short-run Phillips curve nonlinear-steeper when inflation is positive than when inflation is negative.Given this nonlinearity,which of the following statements are true?
I.A positive inflation target (say 2%) leads to less unemployment than does an inflation target of zero.
II.The NAIRU (noninflationary rate of unemployment) is increased.

A) I is true; II is not.
B) II is true; I is not.
C) Both I and II are true.
D) Neither I nor II is true.