Figure 35-7 Use the Two Graphs in the Diagram to Answer the Answer

question 59

Multiple Choice

Figure 35-7
Use the two graphs in the diagram to answer the following questions.
-Refer to Figure 35-7.Starting from C and 3,in the short run an unexpected increase in money supply growth moves the economy to

• A)A and 1.
• B)B and 2.
• C)back to C and 3.
• D)D and 4.

---

Definitions:

Consumer Price Index

An index measuring the change in the price level of a basket of consumer goods and services purchased by households.

Basket

A collection of goods, services, or financial instruments grouped together for the purpose of analysis, comparison, or investment.

CPI

Consumer Price Index, a measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care, used to estimate inflation.

West Region

A term that could refer to the western part of a country, area, or specified region, often defined by geographic, administrative, or socioeconomic criteria.