(Figure: Understanding Phillips Curves Shifts 2) Which Statement BEST Describes

Multiple Choice

(Figure: Understanding Phillips Curves Shifts 2) Which statement BEST describes a decision by Congress to move the economy from Phillips curve PC₀ to Phillips curve PC₁?

A) Policymakers implemented expansionary fiscal policy, accepting more unemployment to reduce the rate of inflation.
B) Policymakers implemented contractionary fiscal policy, accepting a higher rate of inflation to reduce unemployment.
C) Policymakers implemented expansionary fiscal policy to reduce the expected inflation rate.
D) Policymakers implemented contractionary fiscal policy to decrease the expected inflation rate.