According to New Classical Theory,if the Public Correctly Anticipates a Government

Multiple Choice

According to new classical theory,if the public correctly anticipates a government policy to increase aggregate demand,then the

A) short-run Phillips curve will be upward sloping,but the long-run Phillips curve will be downward-sloping.
B) long-run Phillips curve will be upward sloping,but the short-run Phillips curve will be downward-sloping.
C) short-run Phillips curve will be upward sloping,but the long-run Phillips curve will be vertical.
D) long run Phillips curve will be upward sloping,but the short-run Phillips curve will be vertical.
E) short- and long-run Phillips curves will be vertical.