Figure 16.4 Refer to Figure 16.4. Suppose that the rational expectations hypothesis holds, and the Fed implements a fully expected increase in money supply growth. Starting from point C, in the short run, the economy tends to move to point

Group of answer choices

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E.

F.

Long-Run Phillips Curve 12+ 10+ D E 8 Inflation Rate (percent) III 4 Short-Run Phillips Curves 2 A 0 12 1 Unemployment Rate (percent)