If the expectation augmented Phillips curve equation is given as W = f (U) + βPe, then which of the following statement will be true:
A. If β = 1, then there is no trade-off between inflation and unemployment.
B. If β = 0, then the Phillips curve will be vertical.
C. -1 < β < +1
D. if β > 0, then the long run Phillips curve will be Steeper than the short run one.
E. Keynsian Phillips curve assumes β = 0.
Choose the correct answer from the options given below:
1
A, B and C only
2
A, D and E only
3
B, D and E only
4
B, C and D only