Refer to the Diagram for a Specific Economy

question 191

Multiple Choice

Refer to the diagram for a specific economy. Which of the following best describes a decision by policymakers that moves this economy from point b to point a?

• A) Policymakers have instituted an expansionary monetary policy and/or a budgetary deficit, thereby accepting more unemployment to reduce the rate of inflation.
• B) Policymakers have instituted a restrictive monetary policy and/or a budgetary surplus, thereby accepting a higher rate of inflation to reduce unemployment.
• C) Policymakers have instituted an expansionary monetary policy and/or a budgetary deficit, thereby accepting a higher rate of inflation to reduce unemployment.
• D) Policymakers have instituted a restrictive monetary policy and/or a budgetary surplus, thereby accepting more unemployment to reduce the rate of inflation.

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Definitions:

Design Pathway

A pathway that can uncover high-value opportunities because the entrepreneur is focusing on unmet needs of customers, specifically latent needs.

Effectuating Opportunities

The act of identifying and acting upon potential business opportunities by mobilizing resources and strategies.

Prior Knowledge

The information and understanding a person already possesses before being exposed to new learning or experiences.

Relationship-Seeking Strategies

Approaches or plans developed to create, maintain, or enhance relationships with customers, partners, or stakeholders.