Figure 35-2
-Refer to Figure 35-2. Assume the figure depicts possible outcomes for the year 2022. In 2022, the economy is at point A on the left-hand graph, which corresponds to point A on the right-hand graph. The price level in the year 2021 was

Question

Figure 35-2  
-Refer to Figure 35-2. Assume the figure depicts possible outcomes for the year 2022. In 2022, the economy is at point A on the left-hand graph, which corresponds to point A on the right-hand graph. The price level in the year 2021 was

Quizplus · Accepted Answer

The economy is at point A on both graphs, indicating the price level in 2022. If the price level in 2021 was 150, it suggests that the economy has not experienced significant inflation or deflation, maintaining a stable price level from the previous year.