Exhibit 10-7 Aggregate Supply and Demand Curves in Exhibit

Multiple Choice

Exhibit 10-7 Aggregate supply and demand curves In Exhibit 10-7, choosing to operate the economy at GDP = $1200 billion and P = 110 would be opting for an economy of:

A) moderate unemployment with inflation.
B) full employment without inflation.
C) full employment with inflation.
D) high unemployment and high inflation.
E) moderate cyclical unemployment without inflation.