Refer to the Graphs

Multiple Choice

Refer to the graphs. Assume that the economy starts out at point D in Graph 2, whereas full employment would be attained at point C. The Phillips curve shown suggests that full employment

A) can be attained only with a higher inflation rate.
B) may be attained along with a lower inflation rate.
C) cannot be attained regardless of inflation rate.
D) can be attained by implementing restrictive fiscal or monetary policy.