Accommodative Policies in Response to Price Shocks Cause

Accommodative policies in response to price shocks cause

A) more price instability if expectations augment the Phillips curve than if they do not.
B) less price instability if expectations augment the Phillips curve than if they do not.
C) the same significant degree of price instability regardless of whether or not expectations augment the Phillips curve.
D) a only if expectations are formed at least in part on the basis of last year's experience.
E) b only if expectations are formed at least in part on the basis of last year's experience.