Refer to the Graph Shown

question 38

Multiple Choice

Refer to the graph shown. Suppose an economy begins at point B but then adopts a contractionary monetary policy. In the long run, this policy would most likely:

• A)raise inflation to 9 percent but leave unemployment at 5.5 percent.
• B)lower inflation to 3 percent but leave unemployment at 5.5 percent.
• C)raise inflation to 9 percent but lower unemployment to 4 percent.
• D)lower inflation to 3 percent but raise unemployment to 7.5 percent.

---

Definitions:

Radical Redesign

A fundamental and comprehensive restructuring of a process, system, or product to achieve dramatic improvements in critical performance measures, such as quality, cost, or speed.

Business Processes

The set of systematic activities or tasks that produce a specific service or product for a particular customer or market.

Automated Work Cell

A system comprised of robotic or mechanical units designed to perform a variety of tasks autonomously with minimal human intervention.

Centralized Computer

A single computing system or server that provides services, resources, or data to multiple users or client machines.