Asked by
Kelsey Bryant
on Dec 17, 2024
Verified
Refer to Figure 35-1. Suppose points F and G on the right-hand graph represent two possible outcomes for an imaginary economy in the year 2020, and those two points correspond to points B and C, respectively, on the left-hand graph. Also, suppose we know that the price index equaled 120 in 2019. Then the numbers 115 and 130 on the vertical axis of the left-hand graph would have to be replaced by
A) 155 and 175, respectively.
B) 138 and 156, respectively.
C) 137.5 and 154.75, respectively.
D) 135 and 150, respectively.
Price Index
A measurement that shows how the average price level of a selected set of goods and services has changed over time.
Vertical Axis
The y-axis in a graph or chart, which is typically used to represent the range of one of the variables in the data.
- Analyze the implications of changes in aggregate demand and aggregate supply on the economy.
Verified Answer
AM
Learning Objectives
- Analyze the implications of changes in aggregate demand and aggregate supply on the economy.