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 left-hand graph?
A)the wage rate
B)the inflation rate
C)the price level
D)the change in output from one year to the next

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 left-hand graph?
A)the wage rate 
B)the inflation rate 
C)the price level 
D)the change in output from one year to the next

Quizplus · Accepted Answer

The vertical axis on the left-hand graph represents the price level, which is measured using an index such as the consumer price index (CPI). It shows the average price level of goods and services in the economy. Output is measured along the horizontal axis.