please ignore it. got the ans.
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This is an interesting question given that you relate this question to today’s global economic scenario.
Scenario 1:
In US, since last year US economy was booming on the back of easy monetary policy & then quickly inflation picked up beyond the control. So as we know when inflation goes up, central bankers increase interest rates to calm down inflation. Since US economy was growing (hence low unemployment rate). This scenario can be related to the 1st option.
Scenario 2:
Inflation shoots up because of supply chain disruption (supply side), think of russia-ukraine war leading to supply shocks of Russian oil & gas. Imagine if this situation occurred on the back of slow economic growth hence high unemployment.
This scenario depicts option C.
Scenario 1 can be corrected with contractionary monetary policy but scenario 2 cannot be corrected with contractionary monetary policy because it’s caused by supply side disruptions. If central bank were to intervene in scenario 2 then the economy will experience more slow economic growth & increased unemployment.
I hope it helps.