-Refer to the Above Diagram for a Specific Economy

question 88

Multiple Choice

-Refer to the above diagram for a specific economy.Which of the following best describes a decision by policymakers which moves this economy from point b to point a?

• A) Policymakers have instituted an expansionary money policy and/or a budgetary deficit,thereby accepting more unemployment to reduce the rate of inflation.
• B) Policymakers have instituted a tight money policy and/or a budgetary surplus,thereby accepting a higher rate of inflation to reduce unemployment.
• C) Policymakers have instituted an expansionary money and/or a budgetary deficit,thereby accepting a higher rate of inflation to reduce unemployment.
• D) Policymakers have instituted a tight money policy and/or a budgetary surplus,thereby accepting more unemployment to reduce the rate of inflation.

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