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Refer to the Graph B2B _ { 2 } It Is Possible for the
Government to Reduce the Initial

Question 161

Multiple Choice

   Refer to the graph. Assume the economy is at the initial position of  B _ { 2 }  . It is possible for the Government to reduce the unemployment rate and move the economy to C2 if A)  expected in?ation remains at 4 percent. B)  expected in?ation becomes 8 percent. C)  actual in?ation remains at 4 percent. D)  actual in?ation is at 12 percent. Refer to the graph. Assume the economy is at the initial position of B2B _ { 2 } . It is possible for the
Government to reduce the unemployment rate and move the economy to C2 if


A) expected in?ation remains at 4 percent.
B) expected in?ation becomes 8 percent.
C) actual in?ation remains at 4 percent.
D) actual in?ation is at 12 percent.

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