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.

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The Answer of 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.

Refer to the Above Diagram and Assume the Economy Is