Figure 35-8 Use This Graph to Answer the Questions Below

question 57

Multiple Choice

Figure 35-8
Use this graph to answer the questions below.
-Refer to figure 35-8.If the economy starts at 5% unemployment and 5% inflation then if the Federal Reserve pursues a contractionary monetary policy,in the short run the economy moves to

• A)3% unemployment and 5% inflation.In the long run the economy moves to 5% unemployment and 5% inflation.
• B)3% unemployment and 5% inflation.In the long run the economy moves to 5% unemployment and 3% inflation.
• C)7% unemployment and 3% inflation.In the long run the economy moves to 5% unemployment and 5% inflation.
• D)7% unemployment and 3% inflation.In the long run the economy moves to 5% unemployment and 3% inflation.

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Definitions:

Corporate Wrongdoing

Actions taken by companies or their representatives that are unethical, illegal, or otherwise harmful to others.

Ethics

Moral principles that govern a person's behavior or the conducting of an activity.

Compliance Programs

Structured plans implemented by organizations to ensure adherence to legal, ethical, and regulatory standards and requirements.

Terrestrial Planets

Our solar system’s four inner planets, which have solid rocky surfaces and include Mercury, Venus, Earth, and Mars; syn. inner planets.