According to the expectations theory the philips curve the :

a. short-run unemployment rate is not affected by inflation, but lower than expected inflation causes the unemployment rate to increase in the long-run

b. short-run unemployment rate is not affected by inflation but lower than expected inflation causes the unemployment rate to fall in the long-run

c. long-run unemployment rate is not affected by inflation, but lower than expected inflation causes unemployment to fall in the short-run

d. long-run unemployment rate is not affected by inflation, but lower than expected inflation causes unemployment to increase in the short-run

e. long-run and short-run unemployment rates are unaffected by inflation.

According to the expectations theory of the philips curve , when inflation turns out to be higher than expected:

a. the unemployment rate will initially increase but as time passes the short-run philips curve shifts left

b. the unemployment rate will initially increase but as time passes the short-run philips curve shifts right.

c. the unemployment rate will initially remain the same but as time passes the short-run philips curve will shift left

d. the unemployment rate will initially fall, but as time passes the short- run philips curve shifts left

e. the unemployment rate will initially falls but as time passes the short-run philips curve shifts rights.