At Long-Run Equilibrium in the Dynamic Model of Aggregate Demand

Multiple Choice

At long-run equilibrium in the dynamic model of aggregate demand and aggregate supply, which variables will equal the central bank's target rate of inflation?

A) the current inflation rate, but not the expected inflation rate
B) the expected inflation rate, but not the current inflation rate
C) both the current and expected rates of inflation
D) neither the current nor the expected rates of inflation