29.3 Reducing Inflation The Three Figures Below Show the Phases of a Disinflation.In

question 85

Multiple Choice

29.3 Reducing Inflation
The three figures below show the phases of a disinflation.In part (i) ,the economy is experiencing a sustained inflation at E₁. FIGURE 29-4
-Refer to Figure 29-4,part (ii) .If the AS curve continues to drift upward during Phase 2 of the disinflation process,the economy will experience

• A)falling unemployment and rising output.
• B)falling real wages and factor prices and falling unemployment.
• C)rising real wages and factor prices and rising employment.
• D)rising unemployment and falling output.
• E)a falling price level and falling output.

---

Definitions:

Navigable Waterways

Water bodies that are deep and wide enough for ships and boats to travel through, often playing a key role in transportation and trade.

Federal System

A form of government in which power is divided between a central authority and constituent political units.

Unitary

A system of government where a single central government holds the majority of the power, with any regional or local governments having authority that is delegated from the central government.

Confederal Systems

A form of government where power is given to individual states or entities, with a weak central authority, allowing for a loose union.