Which Graph in the Figures Below Is a Plot of a Linear

question 88

Multiple Choice

Which graph in the figures below is a plot of a linear behavior?

• A) figure (a)
• B) figure (b)
• C) figure (c)
• D) none of these
• E) all three graphs

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Definitions:

Price Levels

The midpoint of prices for every type of good and service produced economically.

Cost-Pull Inflation

Inflation caused by an increase in prices of inputs like labour, raw material, etc., leading to a decrease in the supply of these goods.

Demand-Pull Inflation

A sustained rise in the price level caused by a rightward shift of the aggregate demand curve.

Inflation Rate

The percentage rate at which the general level of prices for goods and services is rising, eroding purchasing power.