When Both Inflation and Unemployment Are Concerns, Supply-Side Economists Argue

Multiple Choice

When both inflation and unemployment are concerns, supply-side economists argue in favor of policies to shift the

A) aggregate supply curve to the right and lower the CPI, while Keynesian fiscal policy would shift the aggregate demand curve to the right and increase the CPI.
B) aggregate supply curve to the left and raise the CPI, while Keynesian fiscal policy would shift the aggregate demand curve to the left and decrease the CPI.
C) aggregate supply curve to the right and lower the CPI, which is the same policy Keynesian economists would advocate.
D) aggregate demand curve to the right because unemployment is a more important concern than inflation.