Rate of inflation (%) a N b 2 3 4 5 6 7 8 9 Unemployment Rate (%) Refer to the diagram for a specific economy. The shape of this curve suggests that Multiple Choice O full employment and price stability are compatible goals only when aggregate demand is falling. O each successive unit of decline in the unemployment rate is accompanied by a smaller increase in the rate of inflation. each successive unit of decline in the unemployment rate is accompanied by a larger increase in the rate of inflation. O the price level rises at a diminishing rate as the level of aggregate demand increases