Figure 34-7 -Refer to Figure 34-7. Which of the Following Is Correct

question 140

Multiple Choice

Figure 34-7
-Refer to Figure 34-7. Which of the following is correct?

• A) Unemployment rises as the economy moves from point a to point b.
• B) Either fiscal or monetary policy could be used to move the economy from point b to point a.
• C) If the economy is left alone, then as the economy moves from point b to long-run equilibrium, the price level will fall farther.
• D) All of the above are correct.