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

Question 59

Multiple Choice

Figure 17-1
Figure 17-1 -Which of the following is true about the economy depicted in Figure 17-1? A) Tax incentives are being used to stimulate aggregate supply. B) Policy makers 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 17-1?

A) Tax incentives are being used to stimulate aggregate supply.
B) Policy makers 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: