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Refer to the Graph Above

Question 104

Multiple Choice

Refer to the graph above. Assume the economy is at the initial position of B<sub>2</sub>. It is possible for the government to reduce the unemployment rate and move the economy to C<sub>2</sub> if: A) Expected inflation remains at 4% B) Expected inflation becomes 8% C) Actual inflation remains at 4% D) Actual inflation is at 12% Refer to the graph above. Assume the economy is at the initial position of B2. It is possible for the government to reduce the unemployment rate and move the economy to C2 if:


A) Expected inflation remains at 4%
B) Expected inflation becomes 8%
C) Actual inflation remains at 4%
D) Actual inflation is at 12%

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