Question: The data for 1970-2003 show a chaotic relationship between inflation and unemployment rather than the inverse relationship of the 1960s. The most likely explanation for

The data for 1970-2003 show a chaotic relationship between inflation and unemployment rather than the inverse relationship of the 1960s. The most likely explanation for this is that

A) aggregate demand increased into the vertical range of aggregate supply.

B) aggregate demand decreased into the horizontal range of aggregate supply.

C) supply shocks caused aggregate supply to shift more than it had in the past.

D) monetarists persuaded the government not to intervene in the economy.

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2. Find out if there are other reference points that can be used as reasonable alternatives.

1. Identify your reference point when making a decision based on an element of risk.

3. If there are reasonable alternatives, think about your decisions based on the different reference points and see if there are any contradictions in the decisions.