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Question 1

Use the graph below to answer the following questions:

Graphing window shows horizontal axis: 0 to 10, vertical axis: 0 to 10. Start Graph, Color black
xy
05
14
23
32
41
5-0
6-1
7-2
8-3
9-4
10-5
Start Graph, Color black. Closed dot at (0,5). Start Graph, Color black. Closed dot at (4,1). Start Graph, Color black. Closed dot at (2,3). Start Graph, Color black. Closed dot at (2,6). Start Graph, Color black. Closed dot at (2,2). Start Graph, Color red
xy
2-0.125
210.125
Label "A" at (0.5,5). Label "C" at (4.5,1). Label "B" at (2.5,3). Label "D" at (2.5,6). Label "E" at (2.5,2). Label "Unemployment Rate" at pixel coordinates (175,-5).Label "Inflation Rate" at pixel coordinates (-5,170).Label "Curve 1" at (2,10). Label "Curve 2" at (0,4).

Curve 1 (red color) is

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Question 2

Curve 2 (black color) is

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Question 3

What is the unemployment rate at point B?

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Question 4

What is the inflation rate at point B?

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Question 5

If the economy starts at B and the money supply growth rate increases, then in the short run the economy moves to

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Question 6

If the economy starts at B and the money supply growth rate decreases, then in the short run the economy moves to

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Question 7

Suppose the economy starts at B and the money supply growth rate decreases. As a result, in the short-run, the inflation rate will

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Question 8

Suppose the economy starts at B and the money supply growth rate decreases. As a result, in the short-run, the unemployment rate will

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Question 9

Suppose the economy starts at B and the money supply growth rate increases. As a result, in the short-run the inflation rate will

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Question 10

Suppose the economy starts at B and the money supply growth rate increases. As a result, in the short-run, the unemployment rate will

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Question 11

If the economy starts at B and the money supply growth rate increases, in the long-run, the economy

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