Figure 21-5

question 275

Multiple Choice

Figure 21-5
(a)
(b)
-Refer to Figure 21-5. In graph (a) , if income is equal to $200, then the price of good Y is

• A)$3.
• B)$5.
• C)$7.
• D)$10.

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Definitions:

Federal Reserve

The central banking system of the United States, responsible for implementing the country's monetary policy.

Money Supply

The entire amount of financial assets existing in an economy at a certain time.

Inflation

A widespread inflation of prices leading to a diminished ability to purchase with money.

Short-run Phillips Curve

A graphical representation showing an inverse relationship between the rate of inflation and the rate of unemployment in an economy over the short term.