In the Phillips Curve $\Delta \pi _ { t } = \bar { v } \tilde { Y } _ { t } + \bar { a } , \bar { v }$

Multiple Choice

In the Phillips curve $\Delta \pi _ { t } = \bar { v } \tilde { Y } _ { t } + \bar { a } , \bar { v }$ measures:

A) a price shock
B) how sensitive inflation is to interest rates
C) how sensitive inflation is to aggregate demand conditions
D) how sensitive inflation is to aggregate supply conditions
E) how sensitive inflation is to price shocks