Refer to the diagram and assume the economy is initially at point $b _ { 1 } \text {. Point } c _ { 1 }$ represents
A) a stable position because reality and expectations are consistent.
B) a stable position because full employment and a constant annual in?ation rate are represented.
C) an unstable situation because government will undertake contractionary policies.
D) an unstable situation because nominal wage rates will increase.

Question

Refer to the diagram and assume the economy is initially at point $b _ { 1 } \text {. Point } c _ { 1 }$ represents
A) a stable position because reality and expectations are consistent. 
B) a stable position because full employment and a constant annual in?ation rate are represented. 
C) an unstable situation because government will undertake contractionary policies. 
D) an unstable situation because nominal wage rates will increase.

Quizplus · Accepted Answer

The Answer of  Refer to the diagram and assume the economy is initially at point $b _ { 1 } \text {. Point } c _ { 1 }$ represents
A) a stable position because reality and expectations are consistent. 
B) a stable position because full employment and a constant annual in?ation rate are represented. 
C) an unstable situation because government will undertake contractionary policies. 
D) an unstable situation because nominal wage rates will increase.

Refer to the Diagram and Assume the Economy Is Initially b1. Point c1b _ { 1 } \text {. Point } c _ { 1 }b1​. Point c1​

Refer to the Diagram and Assume the Economy Is Initially $b _ { 1 } \text {. Point } c _ { 1 }$