Multiple Choice
Figure 34-7
-Refer to Figure 34-7. Which of the following is correct?
A) Unemployment rises as the economy moves from point a to point b.
B) Either fiscal or monetary policy could be used to move the economy from point b to point a.
C) If the economy is left alone, then as the economy moves from point b to long-run equilibrium, the price level will fall farther.
D) All of the above are correct.
Correct Answer:

Verified
Correct Answer:
Verified
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