-In the Above Figure, the Axis Break in the X-Axis

question 83

Multiple Choice

-In the above figure, the axis break in the x-axis

• A) reflects the fact that for the years covered in the figure, the unemployment rate was never less than 3 percent.
• B) shows that there is no relationship between inflation and unemployment.
• C) misleadingly shows that inflation has changed very little even though the unemployment rate has increased a great deal.
• D) implies that for the years covered in the figure, the inflation rate was always greater than 1 percent.

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Definitions:

Industry Price

The average or standard price of goods or services within a specific industry, influenced by factors like demand, supply, and competition.

Returns to Scale

The rate at which output increases as inputs are increased proportionately.

Industry Supply Curve

A graphical representation that shows the relationship between the price of a good and the total output of that good by all firms in the industry.

Demand Curve

A graph showing the relationship between the price of a good and the quantity of that good which consumers are willing to purchase at different prices.