Figure 17-9 -Refer to Figure 17-9.A Follower of the New Classical Macroeconomics

Multiple Choice

Figure 17-9
-Refer to Figure 17-9.A follower of the new classical macroeconomics would argue that a contractionary monetary policy to lower inflation after a supply shock,like that pursued by Volcker in 1979,would result in a movement from

A) A to D to C.
B) A to B.
C) C to D to A.
D) C to A.
E) A to C.