Figure 33-1 Which of the Following Is True About the Economy Depicted

question 131

Multiple Choice

Figure 33-1

Which of the following is true about the economy depicted in Figure 33-1?

• A) Economy is experiencing supply-side inflation.
• B) Policymakers have chosen to fight inflation rather than unemployment.
• C) The increase in aggregate demand has increased prices but not real GDP.
• D) The slope of the aggregate supply curve embodies the trade-off between unemployment and inflation.