Critics of the Phillips Curve Argue That in the Long

Multiple Choice

Critics of the Phillips curve argue that in the long run

A) there is a trade-off between unemployment and inflation.
B) for any given unemployment level there is a corresponding inflation rate to which the economy will automatically revert.
C) employees are not able to anticipate future rates of inflation, and therefore unemployment can always be reduced by inflating the economy.
D) there is no trade-off between inflation and unemployment because workers' expectations adjust to any systematic attempts to reduce unemployment below the natural rate.