(Figure: Policy Changes in the Short Run) to Move the Economy

Multiple Choice

(Figure: Policy Changes in the Short Run) To move the economy from point b to point a in the short run, Federal Reserve policymakers implement _____ monetary policy, thereby accepting _____ to reduce _____.

A) expansionary; more unemployment; the rate of inflation
B) contractionary; a higher rate of inflation; unemployment
C) expansionary; a higher rate of inflation; unemployment
D) contractionary; more unemployment; the rate of inflation