Consider an Economy That Perpetually Achieves an Unemployment Rate That

Consider an economy that perpetually achieves an unemployment rate that is 1 point below the natural rate. Let its Phillips curve relationship have no expectations term and suppose that the coefficient linking the GDP gap with inflation were 0.4. Unless the employment situation changed, you would predict that

A) the inflation rate would increase by 0.4 point each year in the foreseeable future.
B) the inflation rate would equal 0.4 percent each year in the foreseeable future.
C) the inflation rate would increase by 1.2 points each year in the foreseeable future.
D) the inflation rate would equal 1.2 percent each year in the foreseeable future.
E) none of the above.