The clearest trade-off between unemployment and inflation occurred between 1960 and 1969

Aggregate supply increases when

a. wage rates or interest rates decrease while the economy's price level remains unchanged b. resource availability is reduced c. there are fewer workers d. there is less capital and the price level remains unchanged e. there are increased inflationary expectations of labor

Figure 36-3 ? Which of the situations illustrated in Figure 36-3 shows the effects of a currency appreciation leading to a recession?

A. 1 B. 2 C. 3 D. 4