Figure 16-3

-Refer to Figure 16-3.Consider the following statement: "The nation's inflation rate rose to a record high last month, the government reported yesterday.The consumer price index jumped 0.3% in January.Coupled with the announcement earlier this month that unemployment had risen by 0.5 percentage points, the reports suggested that the first month of President Nixon's second term had gotten off to a rocky start." Which of the following movements represents the statement?

Question

Figure 16-3
 
-Refer to Figure 16-3.Consider the following statement: "The nation's inflation rate rose to a record high last month, the government reported yesterday.The consumer price index jumped 0.3% in January.Coupled with the announcement earlier this month that unemployment had risen by 0.5 percentage points, the reports suggested that the first month of President Nixon's second term had gotten off to a rocky start." Which of the following movements represents the statement?

Quizplus · Accepted Answer

The movement from B to C represents a rise in inflation rate as shown by the increase in the consumer price index (CPI). The movement from A to B is unrelated, as it shows a decrease in the prime rate. The movements from C to D and C to B do not depict a significant change in economic indicators relevant to the statement.

Figure 16-3 -Refer to Figure 16-3.Consider the Following Statement: "The Nation's Inflation