In 2007 and 2008 Households and Firms Reduced Desired Expenditures

Multiple Choice

In 2007 and 2008 households and firms reduced desired expenditures.During the same period inflation fell and unemployment rose.

A) The change in inflation,but not the change in unemployment is consistent with what a given short-run Phillips curve implies.
B) The change in unemployment,but not the change in inflation is consistent with what a given short-run Phillips curve implies.
C) Both the change in inflation and the change in unemployment are consistent with what a given short-run Phillips curve implies.
D) Neither the change in inflation nor the change in unemployment are consistent with what a given short-run Phillips curve implies.