Suppose a Central Bank Takes Actions That Will Lead to a Higher

Multiple Choice

Suppose a central bank takes actions that will lead to a higher inflation rate.The public,however,is slow to adjust its expectation of inflation.Then,in the short run,unemployment

A) rises.As inflation expectations adjust,the short-run Phillips curve shifts right.
B) rises.As inflation expectations adjust,the short-run Phillips curve shifts left.
C) falls.As inflation expectations adjust,the short-run Phillips curve shifts right.
D) falls.As inflation expectations adjust,the short-run Phillips curve shifts left.