Refer to the following figure when answering the following questions.
Figure 12.9: Change in Inflation by Quarter
-Consider Figure 12.9. You are Federal Reserve chairman Greenspan and today's date is the fourth quarter of 1997 (1997.4). Given the information you have, using the Phillips curve, to stabilize the economy you would ________ interest rates, risking ________.
A) raise; inflation
B) lower; inflation
C) raise; recession
D) lower; higher unemployment
E) Not enough information is given.

Question

Refer to the following figure when answering the following questions.
Figure 12.9: Change in Inflation by Quarter 
-Consider Figure 12.9. You are Federal Reserve chairman Greenspan and today's date is the fourth quarter of 1997 (1997.4). Given the information you have, using the Phillips curve, to stabilize the economy you would ________ interest rates, risking ________.
A) raise; inflation 
B) lower; inflation 
C) raise; recession 
D) lower; higher unemployment 
E) Not enough information is given.

Quizplus · Accepted Answer

The Answer of Refer to the following figure when answering the following questions.
Figure 12.9: Change in Inflation by Quarter 
-Consider Figure 12.9. You are Federal Reserve chairman Greenspan and today's date is the fourth quarter of 1997 (1997.4). Given the information you have, using the Phillips curve, to stabilize the economy you would ________ interest rates, risking ________.
A) raise; inflation 
B) lower; inflation 
C) raise; recession 
D) lower; higher unemployment 
E) Not enough information is given.

Refer to the Following Figure When Answering the Following Questions