The Phillips Curve Trade-Off Relationship Implies That

Multiple Choice

The Phillips curve trade-off relationship implies that

A) the government can fine-tune the economy and generate both the natural rate of unemployment and zero inflation.
B) the government can fine-tune the economy and pick the most preferred combination of unemployment and inflation.
C) low unemployment can be obtained only by generating rapidly increasing inflation.
D) there is no relationship between inflation and unemployment, at least in the long run.