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Policymakers face a tradeoff between inflation and unemployment. The following table shows the combinations of inflation and unemployment that the government can achieve with existing

Policymakers face a tradeoff between inflation and unemployment. The following table shows the combinations of inflation and unemployment that the government can achieve with existing policies. What is the opportunity cost of reducing inflation from 10% to 4%?

Inflation

Unemployment

12%

2%

10%

3%

8%

4%

6%

6%

4%

9%

a. 9% points of unemployment

b. 6% points of inflation

c. 4% points of inflation

d. 6% points of unemployment

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