The Negative Correlation Between Inflation and Unemployment Is Observed Because

Multiple Choice

The negative correlation between inflation and unemployment is observed because

A) a rightward shift of the AD curve will raise unemployment in the long run and decrease inflation in the short run.
B) a rightward shift of the AD curve will raise unemployment in the short run and decrease inflation in the long run.
C) a rightward shift of the AD curve will reduce unemployment in the long run and increase inflation in the short run.
D) a rightward shift of the AD curve will reduce unemployment in the short run and increase inflation in the long run.
E) a leftward shift the AD curve will increase potential GDP and reduce inflation in the short run.