Figure 16-5 A graph shows Unemployment Rate on the horizontal axis and Inflation Rate on the vertical axis. There are six points noted, reading from left to right, top to bottom: ? Point 3 lies up and to the right of the origin ? Point 2 lies down and to the right of point 3 ? Point 1 lies down and to the right of point 2 ? Point 4 lies directly above point 1 at a higher price level than point 3 ? Point 5 lies directly above point 4 ? Point 6 lies up and to the right of point 5. Refer to Figure 16-5. If the economy continually moves between points 1, 2, and 3, it follows that a. this economy has experienced stagflation. b. a tradeoff does not exist between inflation and unemployment. c. when inflation is higher, unemployment is lower. d. when inflation is higher, unemployment falls to 0 percent