Multiple Choice
Use the following to answer questions
Figure: Policy Changes in the Short Run
-(Figure: Policy Changes in the Short Run) To move the economy in the short run from point b to point a,Fed policymakers implement _______ monetary policy,thereby accepting _______ to reduce ________.
A) expansionary;more unemployment;the rate of inflation
B) contractionary ;a higher rate of inflation;unemployment
C) expansionary;a higher rate of inflation;unemployment
D) contractionary;more unemployment;the rate of inflation
Correct Answer:

Verified
Correct Answer:
Verified
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