If an increase in inflation permanently reduced unemployment, then

A) money would not be neutral and the long-run Phillips curve would slope upward.
B) money would not be neutral and the long-run Phillips curve would slope downward.
C) money would be neutral and the long-run Phillips curve would slope upward.
D) money would be neutral and the long-run Phillips curve would slope downward.

Long-run Phillips Curve

An economic concept stating that in the long run, there is no trade-off between inflation and unemployment; the curve is vertical at the natural rate of unemployment.

Inflation

How rapidly the across-the-board prices of goods and services increase, impairing fiscal buying ability.

Unemployment

Unemployment occurs when individuals who are capable of working and are looking for a job are unable to find employment. It is a key economic indicator.