-Which of the Following Statements Best Describes a Decision by Policy-Makers

question 9

Multiple Choice

-Which of the following statements best describes a decision by policy-makers that moves the economy from point b to point a?

• A)Policy-makers are using an easy money policy and/or a budget deficit, thereby accepting more unemployment to reduce the inflation rate.
• B)Policy-makers are using a tight money policy and/or a budget surplus, thereby accepting a higher inflation rate to reduce unemployment.
• C)Policy-makers are using an easy money policy and/or a budget deficit, thereby accepting a higher inflation rate to reduce unemployment.
• D)Policy-makers are using a tight money policy and/or a budget surplus, thereby accepting more unemployment to reduce the inflation rate.
• E)Policy-makers are using an easy money policy and/or a budget surplus, thereby accepting more unemployment to reduce the inflation rate.

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