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Figure 17-1 -Which of the Following Is True About the Economy Depicted

Question 42

Multiple Choice

Figure 17-1
Figure 17-1 -Which of the following is true about the economy depicted in Figure 17-1? A) It is experiencing supply-side inflation. B) Policy makers 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 17-1?

A) It is experiencing supply-side inflation.
B) Policy makers 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: