Figure 13.10 Alt text for Figure 13.10: In figure 13.10, a graph comparing unemployment rate and inflation rate.
Long description for Figure 13.10: The x-axis is labelled, unemployment rate percent, and the y-axis is labelled, inflation rate percent per year.3 points; A, B, and C are plotted such that A and B share equivalent y-axis values, and B and C share equivalent x-axis values.
-Refer to Figure 13.10.A response to persistent ________ due to ongoing expansionary monetary policy is depicted in the figure above as a movement from C to A to B.

Question

Figure 13.10  Alt text for Figure 13.10: In figure 13.10, a graph comparing unemployment rate and inflation rate.
Long description for Figure 13.10: The x-axis is labelled, unemployment rate percent, and the y-axis is labelled, inflation rate percent per year.3 points; A, B, and C are plotted such that A and B share equivalent y-axis values, and B and C share equivalent x-axis values.
-Refer to Figure 13.10.A response to persistent ________ due to ongoing expansionary monetary policy is depicted in the figure above as a movement from C to A to B.

Quizplus · Accepted Answer

The graph shows a positive relationship between inflation rate and unemployment rate, meaning that as inflation rate increases, so does the unemployment rate. A movement from point C to point A and then to point B represents a response to persistent high inflation due to ongoing expansionary monetary policy. As the expansionary monetary policy continues, the inflation rate increases, leading to a decrease in unemployment rate from C to A. However, as the inflation rate keeps increasing, eventually it leads to a higher unemployment rate again at point B. Therefore, the best choice for the persistent issue depicted in the graph is high inflation (C).

Figure 1310 Alt Text for Figure 13