If inflation increased to 4% and unemployment was listed at 8%, which of the following policies would an economist most likely recommend using? Decrease the reserve requirement and buy bonds. Increase defense spending and increase the discount rate. Increase personal income taxes and sell securities bonds. Decrease funding for road projects and decrease the discount rate. Sell bonds and decrease personal income taxes.

You're asking in the ap section, so i'll give the ap calculus-style answer. alternatively, you can find the vertex of the parabola and use the "y"-coordinate as the answer.

the maximum height can occur at a critical number, that is, a number  such that  .

the derivative of  can be calculated as follows:



find a value of  that is a zero of the derivative:


this is parabola that is opening downward; we can assume there is a maximum at  .

to find that maximum, calculate  .