Refer to the Diagram Given Below

Multiple Choice

Refer to the diagram given below.Suppose an economy is initially at point B₁. If workers fully anticipate price level increases and the government uses expansionary policies to bring the unemployment rate below 6 percent, the economy will:

A) move from B₁ to C₁ at which macroeconomic policies will cease to be effective.
B) remain at B₁.
C) follow the path indicated by B₁, B₂, B₃, and B₄.
D) directly move from B₄ to C₁.