Figure 35-3.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 35-3.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 35-3.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 35-3.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 vertical axis of the right-hand graph measures the unemployment rate. Option A is incorrect because the interest rate is not represented on either of the graphs. Option C is incorrect because the government's budget deficit as a percent of GDP is not being measured on either of the graphs. Option D is incorrect because the growth rate of the nominal money supply is not being measured on either of the graphs.