There Is No Long-Run Tradeoff Between Inflation and Unemployment Because

Multiple Choice

There is no long-run tradeoff between inflation and unemployment because

A) the aggregate demand curve always shifts back to its baseline position.
B) inflation always returns to the baseline level.
C) unemployment always returns to the natural rate.
D) the Federal Reserve does not allow such a tradeoff.
E) potential GDP declines as the rate of inflation increases.