Figure 35-1.The left-hand graph shows a short-run aggregate-supply (SRAS)curve and two aggregate-demand (AD)curves.On the right-hand diagram,U represents the unemployment rate.
-Refer to Figure 35-1.Suppose points F and G on the right-hand graph represent two possible outcomes for an imaginary economy in the year 2012,and those two points correspond to points B and C,respectively,on the left-hand graph.Then it is apparent that the price index equaled
A)130 in 2011.
B)115 in 2011.
C)110 in 2011.
D)100 in 2011.

Question

Figure 35-1.The left-hand graph shows a short-run aggregate-supply (SRAS)curve and two aggregate-demand (AD)curves.On the right-hand diagram,U represents the unemployment rate. 
-Refer to Figure 35-1.Suppose points F and G on the right-hand graph represent two possible outcomes for an imaginary economy in the year 2012,and those two points correspond to points B and C,respectively,on the left-hand graph.Then it is apparent that the price index equaled
A)130 in 2011. 
B)115 in 2011. 
C)110 in 2011. 
D)100 in 2011.

Quizplus · Accepted Answer

The problem suggests that the points on the graphs correspond to different years, and the price index is typically set to 100 in the base year, which is likely 2011 in this context.