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Figure 33-1 Which of the Following Is True About the Economy Depicted

Question 55

Multiple Choice

Figure 33-1
Figure 33-1 Which of the following is true about the economy depicted in Figure 33-1? A) Economy is experiencing supply-side inflation. B) Policymakers have chosen to fight inflation rather than unemployment. C) The increase in aggregate demand has increased prices but not real GDP. D) The slope of the aggregate supply curve embodies the trade-off between unemployment and inflation.
Which of the following is true about the economy depicted in Figure 33-1?

A) Economy is experiencing supply-side inflation.
B) Policymakers have chosen to fight inflation rather than unemployment.
C) The increase in aggregate demand has increased prices but not real GDP.
D) The slope of the aggregate supply curve embodies the trade-off between unemployment and inflation.

Correct Answer: