Figure 16-8 -Refer to Figure 16-8.The Movement from Point 4 to Point

Multiple Choice

Figure 16-8

-Refer to Figure 16-8.The movement from point 4 to point 5 is consistent with which phase Of the inflation-unemployment cycle?

A) Phillips phase because inflation is increasing while unemployment is falling
B) recovery phase because although inflation has risen, unemployment has fallen
C) growth phase because the economy is producing above its potential output
D) recovery phase because inflation and unemployment have fallen