Use the Following to Answer Questions

question 111

Multiple Choice

Use the following to answer questions
Figure: Understanding Phillips Curves Shifts 2
-(Figure: Understanding Phillips Curves Shifts 2) Which of the following best describes a decision by Congress to move the economy from Phillips curve PC₀ to Phillips curve PC₁?

• A) Policymakers implemented expansionary fiscal policy,accepting more unemployment to reduce the rate of inflation.
• B) Policymakers implemented contractionary fiscal policy,accepting a higher rate of inflation to reduce unemployment.
• C) Policymakers implemented expansionary fiscal policy to reduce the expected inflation rate.
• D) Policymakers implemented contractionary fiscal policy to decrease the expected inflation rate.

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