Use the Following to Answer Questions

question 62

Multiple Choice

Use the following to answer questions .
Exhibit: Shifts in Aggregate Demand and Aggregate Supply and Inflation-Unemployment Phases
-(Exhibit: Shifts in Aggregate Demand and Aggregate Supply and Inflation-Unemployment Phases) The recessionary gap at point 4 was created

• A) during the Phillips phase that occurred when the economy moved from point 3 to point 4.
• B) when policymakers pursued expansionary policies to move the economy from point 3 to point 4.
• C) during the stagflation phase that occurred when the economy moved from point 3 to point 4.
• D) during the recovery phase when economic agents revised their price expectations in higher prices.

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Definitions:

Par Value

The face value of a bond or stock, as stated on the certificate, which is the nominal value rather than the market value.