-Refer to the Above Diagram and Assume the Economy Is

Multiple Choice

-Refer to the above diagram and assume the economy is initially at point b₁.According to the adaptive expectations theorists,the long-run relationship between the unemployment rate and the rate of inflation is represented by:

A) the line connecting B₁ and C₁.
B) the line through B₁,B₂,B₃,and B₄.
C) the line connecting C₁ and B₂.
D) any line parallel to the horizontal axis.