In the last half of the 1990s, the usual short-run trade-off between inflation and unemployment did not arise because:.a. the Fed held interest rates constant. b. the federal government balanced its budget. c. the U. S. personal savings rate rose. d. productivity (and thus aggregate supply) grew faster than previously.

Which statement best explains the relationship between points a and b? a. consumption reaches its highest point, and then supply begins to fall. b. inflation reaches its highest point, and then the economy begins to expand. c. production reaches its highest point, and then the economy begins to contract. d. unemployment reaches its highest point, and then inflation begins to decrease.