Refer to the Graph $B _ { 2 }$ It Is Possible for the
Government to Reduce the Initial

Multiple Choice

Refer to the graph. Assume the economy is at the initial position of $B _ { 2 }$ . It is possible for the
Government to reduce the unemployment rate and move the economy to C2 if

A) expected in?ation remains at 4 percent.
B) expected in?ation becomes 8 percent.
C) actual in?ation remains at 4 percent.
D) actual in?ation is at 12 percent.