The Ad-Ai Analysis in Conjunction with the Phillips Curve Relationship

Question 130
Multiple Choice

The AD-AI analysis in conjunction with the Phillips curve relationship shows that A) it is impossible to trade higher inflation for lower unemployment in the short run. B) there is no long-run gain from expansionary monetary policy. C) inflation and unemployment are positively correlated in the long run. D) it is possible to trade lower inflation for higher unemployment in the long run. E) there is no short-run gain from expansionary monetary policy.