A Common Explanation for the Behavior of the Short-Run U

Multiple Choice

A common explanation for the behavior of the short-run U.S. Phillips curve in 2009 and 2010 is that, over the previous 20 or so years, the Federal Reserve had

A) established a lot of credibility in its commitment to keep inflation at about 2 percent.
B) established a lot of credibility in its commitment to keep inflation at about 5 percent.
C) failed to establish significant credibility in its announced intent to keep inflation at about 2 percent.
D) failed to establish significant credibility in its announced intent to keep inflation at about 5 percent.