Refer to the following figure when answering
Figure 12.9: Change in Inflation by Quarter (Source: Federal Reserve Economic Data, St. Louis Federal Reserve)
-Consider Figure 12.9, which shows the change in inflation $( \Delta \pi )$ from 1995 to 2000, by quarter. You are Federal Reserve chairman Greenspan and today's date is the second quarter of 1997 (1997.2). Given the information you have, using the Phillips curve, to stabilize the economy you would ________ interest rates, risking ________.
A) raise; recession
B) raise; inflation
C) lower; inflation
D) lower; higher unemployment
E) Not enough information is given.

Question

Refer to the following figure when answering  
Figure 12.9: Change in Inflation by Quarter  (Source: Federal Reserve Economic Data, St. Louis Federal Reserve)
-Consider Figure 12.9, which shows the change in inflation $( \Delta \pi )$ from 1995 to 2000, by quarter. You are Federal Reserve chairman Greenspan and today's date is the second quarter of 1997 (1997.2). Given the information you have, using the Phillips curve, to stabilize the economy you would ________ interest rates, risking ________.
A) raise; recession 
B) raise; inflation 
C) lower; inflation 
D) lower; higher unemployment 
E) Not enough information is given.

Quizplus · Accepted Answer

The Answer of Refer to the following figure when answering  
Figure 12.9: Change in Inflation by Quarter  (Source: Federal Reserve Economic Data, St. Louis Federal Reserve)
-Consider Figure 12.9, which shows the change in inflation $( \Delta \pi )$ from 1995 to 2000, by quarter. You are Federal Reserve chairman Greenspan and today's date is the second quarter of 1997 (1997.2). Given the information you have, using the Phillips curve, to stabilize the economy you would ________ interest rates, risking ________.
A) raise; recession 
B) raise; inflation 
C) lower; inflation 
D) lower; higher unemployment 
E) Not enough information is given.

Refer to the Following Figure When Answering Figure (Δπ)( \Delta \pi )(Δπ)

Refer to the Following Figure When Answering
Figure $( \Delta \pi )$