-Using Figure 16.1, describe the two choices the fed has with respect to changing the money supply if unions negotiate higher industry wages for its members, and as a result, higher rates of inflation emerge. Assume before the wage increase, the economy is at point c.

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-Using Figure 16.1, describe the two choices the fed has with respect to changing the money supply if unions negotiate higher industry wages for its members, and as a result, higher rates of inflation emerge. Assume before the wage increase, the economy is at point c.