-In the Above Figure, If the Economy Is Initially at Point

question 67

Multiple Choice

-In the above figure, if the economy is initially at point c, the short-run effect of a hike in the federal funds rate is given by movement from point

• A) c to point d, decreasing output and increasing the unemployment rate.
• B) c to point d, increasing output and decreasing the unemployment rate.
• C) c to point b, increasing output and decreasing the unemployment rate.
• D) c to point a, keeping output and the unemployment rate constant.

---

Definitions:

Milligram

A unit of mass equal to one thousandth of a gram, often used in medication dosages and nutritional information.

Gram

A metric unit of mass equal to one thousandth of a kilogram.

Millimeter

A metric unit of length equal to one thousandth of a meter.

Microgram

A unit of mass equal to one millionth of a gram, often used to measure very small quantities of medication.