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Figure 17-2 -Refer to Figure 17-2.Suppose the Fed Used Contractionary Policy to Contractionary

Question 81

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Figure 17-2 Figure 17-2   -Refer to Figure 17-2.Suppose the Fed used contractionary policy to push short-run equilibrium to point C.If the short-run equilibrium remained at point C long enough A) the short-run Phillips curve would shift up. B) the short-run Phillips curve would shift down. C) the economy would move back to point A. D) the economy would stay at point C in the long run.
-Refer to Figure 17-2.Suppose the Fed used contractionary policy to push short-run equilibrium to point C.If the short-run equilibrium remained at point C long enough


A) the short-run Phillips curve would shift up.
B) the short-run Phillips curve would shift down.
C) the economy would move back to point A.
D) the economy would stay at point C in the long run.

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