The inflation rate at point c is __ the inflation rate at point a, and the unemployment rate at point c is.__ unemployment rate at point a.
Was the central bank able to achieve its goal of lowering inflation?
a. Yes, but only in the short run; in the long run, inflation returned to its natural rate.
b. No, because the central bank cannot affect the inflation rate through monetary policy.
c. Yes, the central bank's policy successfully reduced inflation in both the short run and the long run.