Figure 22-3. The left-hand graph shows a short-run aggregate-supply (SRAS) curve and two aggregate-demand (AD) curves. On the left-hand diagram, Y represents output and on the right-hand diagram, U represents the unemployment rate.
-Refer to Figure 22-3. What is measured along the vertical axis of the right-hand graph?
A)the interest rate
B)the inflation rate
C)the government's budget deficit as a percent of GDP
D)the growth rate of the nominal money supply

Question

Figure 22-3. The left-hand graph shows a short-run aggregate-supply (SRAS) curve and two aggregate-demand (AD) curves. On the left-hand diagram, Y represents output and on the right-hand diagram, U represents the unemployment rate. 
-Refer to Figure 22-3. What is measured along the vertical axis of the right-hand graph?
A)the interest rate 
B)the inflation rate 
C)the government's budget deficit as a percent of GDP 
D)the growth rate of the nominal money supply

Quizplus · Accepted Answer

The right-hand graph measures the unemployment rate, which is represented by the letter U on the graph. The vertical axis on this graph is labeled "Unemployment Rate." Therefore, the best choice is B, as it is the only option that refers to a measurement that is related to the vertical axis of the right-hand graph.