Solved

Figure 33-1

Question 59

Multiple Choice

Figure 33-1
Figure 33-1 -Which of the following is true about the economy depicted in Figure 33-1? A) Tax incentives are being used to stimulate aggregate supply. B) Policymakers believe the costs of unemployment are higher than the costs of inflation. C) Contractionary monetary policy is being enacted to fight inflation. D) Prices are rising but real GDP is falling.
-Which of the following is true about the economy depicted in Figure 33-1?

A) Tax incentives are being used to stimulate aggregate supply.
B) Policymakers believe the costs of unemployment are higher than the costs of inflation.
C) Contractionary monetary policy is being enacted to fight inflation.
D) Prices are rising but real GDP is falling.

Correct Answer: