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The Government of Tsiratenom Considers Two Policies

Question 89

Multiple Choice

The government of Tsiratenom considers two policies.Policy A would shift AD right by 200 units while policy B would shift AD right by 300 units.According to the short-run Phillips curve policy A will lead


A) to a lower unemployment rate and a lower inflation rate than policy B.
B) to a lower unemployment rate and a higher inflation rate than policy B.
C) to a higher unemployment rate and lower inflation rate than policy B.
D) to a higher unemployment rate and higher inflation rate than policy B.

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