Refer to the graphs. Assume that the economy starts out at point D in Graph 2, whereas full employment would be attained at point C. The Phillips curve shown suggests that full employment
A) can be attained only with a higher inﬂation rate.
B) may be attained along with a lower inﬂation rate.
C) cannot be attained regardless of inﬂation rate.
D) can be attained by implementing restrictive ﬁscal or monetary policy.

Question

Refer to the graphs. Assume that the economy starts out at point D in Graph 2, whereas full employment would be attained at point C. The Phillips curve shown suggests that full employment
A) can be attained only with a higher inﬂation rate. 
B) may be attained along with a lower inﬂation rate. 
C) cannot be attained regardless of inﬂation rate. 
D) can be attained by implementing restrictive ﬁscal or monetary policy.

Quizplus · Accepted Answer

The Answer of  Refer to the graphs. Assume that the economy starts out at point D in Graph 2, whereas full employment would be attained at point C. The Phillips curve shown suggests that full employment
A) can be attained only with a higher inﬂation rate. 
B) may be attained along with a lower inﬂation rate. 
C) cannot be attained regardless of inﬂation rate. 
D) can be attained by implementing restrictive ﬁscal or monetary policy.

Refer to the Graphs