The Figure Below Reflects the Inverse Relationship Between the Inflation

question 3

Multiple Choice

The figure below reflects the inverse relationship between the inflation rate and the unemployment rate. If the economy is initially at point c and aggregate demand increases, the economy will in the long run:

• A) move toward point a
• B) move toward point b
• C) stay at point c
• D) move toward point d
• E) move toward point f

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