-Refer to the above diagram for a specific economy.Which of the following best describes a decision by policymakers which moves this economy from point b to point a?
A) Policymakers have instituted an expansionary money policy and/or a budgetary deficit,thereby accepting more unemployment to reduce the rate of inflation.
B) Policymakers have instituted a tight money policy and/or a budgetary surplus,thereby accepting a higher rate of inflation to reduce unemployment.
C) Policymakers have instituted an expansionary money and/or a budgetary deficit,thereby accepting a higher rate of inflation to reduce unemployment.
D) Policymakers have instituted a tight money policy and/or a budgetary surplus,thereby accepting more unemployment to reduce the rate of inflation.

Question

-Refer to the above diagram for a specific economy.Which of the following best describes a decision by policymakers which moves this economy from point b to point a?
A) Policymakers have instituted an expansionary money policy and/or a budgetary deficit,thereby accepting more unemployment to reduce the rate of inflation. 
B) Policymakers have instituted a tight money policy and/or a budgetary surplus,thereby accepting a higher rate of inflation to reduce unemployment. 
C) Policymakers have instituted an expansionary money and/or a budgetary deficit,thereby accepting a higher rate of inflation to reduce unemployment. 
D) Policymakers have instituted a tight money policy and/or a budgetary surplus,thereby accepting more unemployment to reduce the rate of inflation.

Quizplus · Accepted Answer

Policymakers have instituted an expansionary money and/or a budgetary deficit, thereby accepting a higher rate of inflation to reduce unemployment.

-Refer to the Above Diagram for a Specific Economy