According to the graph shown, what does P on the y-axis stand for?
A) Average price level
B) Inflation rate
C) Price of GDP
D) Price of Y

Question

According to the graph shown, what does P on the y-axis stand for?
A) Average price level 
B) Inflation rate 
C) Price of GDP 
D) Price of Y

Quizplus · Accepted Answer

The y-axis is labeled as "Price Level (Index 2010=100)", which indicates that it measures the average price level of goods and services. Therefore, choice A is the correct answer. B) Inflation rate cannot be determined solely from this graph as it only shows the price level and not the change in price level over time. C) GDP is not represented on this graph. D) Y is typically used to represent income or output in macroeconomics and is not relevant to this graph.

According to the Graph Shown, What Does P on the Y-Axis