Figure 22-3

question 274

Multiple Choice

Figure 22-3. The left-hand graph shows a short-run aggregate-supply (SRAS) curve and two aggregate-demand (AD) curves. On the left-hand diagram, Y represents output and on the right-hand diagram, U represents the unemployment rate.
-Refer to Figure 22-3. What is measured along the vertical axis of the right-hand graph?

• A)the interest rate
• B)the inflation rate
• C)the government's budget deficit as a percent of GDP
• D)the growth rate of the nominal money supply

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Definitions:

Semi-annually

Semi-annually refers to an event or action that occurs twice a year, typically every six months.

Coupon Rate

The interest rate that a bond issuer agrees to pay to the holder annually, expressed as a percentage of the bond's face value.

Intrinsic Value

The perceived or calculated true value of an asset, investment, or company, based on fundamental analysis, regardless of its current market value.

Par Value

The face value of a bond or the stock value stated in the corporate charter.