Figure 35-4

question 62

Multiple Choice

Figure 35-4.The left-hand graph shows a short-run aggregate-supply (SRAS) curve and two aggregate-demand (AD) curves.On the left-hand diagram,the price level is measured on the vertical axis;on the right-hand diagram,the inflation rate is measured on the vertical axis.
-Refer to Figure 35-4.Assume the figure charts possible outcomes for the year 2018.In 2018,the economy is at point B on the left-hand graph,which corresponds to point B on the right-hand graph.Also,point A on the left-hand graph corresponds to A on the right-hand graph.The price level in the year 2018 is

• A)117.25.
• B)114.95.
• C)113.12.
• D)111.10.

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Definitions:

Low Demand

A situation where the desire and need for certain products or services are beneath expectations, often leading to surplus inventory and reduced sales.

Slow Period

Times of low activity or demand in a business or industry, often marked by reduced sales or production.

Supply Chain

The entire system of producing and delivering a product or service, from the supplier of raw materials to the end user.

Coordination

The organization and alignment of activities, efforts, and policies to ensure smooth operation and achievement of common objectives.