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
x
y
0
5
1
4
2
3
3
2
4
1
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
x
y
2
-0.125
2
10.125
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
Before you answer this question, carefully read the labels of the graph. What is measured along the horizontal axis? How about the vertical axis?
Curve 2 (black color) is
Before you answer this question, carefully read the labels of the graph. What is measured along the horizontal axis? How about the vertical axis?
What is the unemployment rate at point B?
Carefully read the information on the graph. The unemployment rate is on the horizontal axis.
What is the inflation rate at point B?
Carefully read the information on the graph. The inflation rate is on the vertical axis.
If the economy starts at B and the money supply growth rate increases, then in the short run the economy moves to
First, think what happens to AD as a result of this policy. Next, think what happens to GDP, unemployment and inflation as a result of the shift in AD.
If the economy starts at B and the money supply growth rate decreases, then in the short run the economy moves to
First, think what happens to AD as a result of this policy. Next, think what happens to GDP, unemployment and inflation as a result of the shift in AD.
Suppose the economy starts at B and the money supply growth rate decreases. As a result, in the short-run, the inflation rate will
First, think what happens to AD as a result of this policy. Next, think what happens to GDP, unemployement and inflation as a result of the shift in AD.
Suppose the economy starts at B and the money supply growth rate decreases. As a result, in the short-run, the unemployment rate will
First, think what happens to AD as a result of this policy. Next, think what happens to GDP, unemployment and inflation as a result of the shift in AD.
Suppose the economy starts at B and the money supply growth rate increases. As a result, in the short-run the inflation rate will
First, think what happens to AD as a result of this policy. Next, think what happens to GDP, unemployment and inflation as a result of the shift in AD.
Suppose the economy starts at B and the money supply growth rate increases. As a result, in the short-run, the unemployment rate will
First, think what happens to AD as a result of this policy. Next, think what happens to GDP, unemployment and inflation as a result of the shift in AD.
If the economy starts at B and the money supply growth rate increases, in the long-run, the economy
First, think what happens to AD as a result of this policy. Next, think what happens to GDP, unemployment and inflation as a result of the shift in AD.