Figure 22-1. The left-hand graph shows a short-run aggregate-supply (SRAS) curve and two aggregate-demand (AD) curves. On the right-hand diagram, U represents the unemployment rate.
-Refer to Figure 22-1. What is measured along the vertical axis of the right-hand graph?
A)the interest rate
B)the inflation rate
C)the wage rate
D)the growth rate of the nominal money supply

Question

Figure 22-1. The left-hand graph shows a short-run aggregate-supply (SRAS) curve and two aggregate-demand (AD) curves. On the right-hand diagram, U represents the unemployment rate. 
-Refer to Figure 22-1. What is measured along the vertical axis of the right-hand graph?
A)the interest rate 
B)the inflation rate 
C)the wage rate 
D)the growth rate of the nominal money supply

Quizplus · Accepted Answer

The vertical axis on the right-hand graph represents the inflation rate, as indicated by the label "Price Level" at the top of the axis. The unemployment rate is measured along the horizontal axis. The other answer choices are not directly represented in either graph.