Figure 17-1

question 140

Multiple Choice

Figure 17-1. The left-hand graph shows a short-run aggregate-supply (SRAS) curve and two aggregate-demand (AD) curves. On the right-hand diagram, U represents the unemployment rate.

-Refer to Figure 17-1. What is measured along the vertical axis of the right-hand graph?

• A) the interest rate
• B) the inflation rate
• C) the wage rate
• D) the growth rate of the nominal money supply

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Definitions:

Noncontrolling Interest

A portion of equity in a subsidiary not owned by the parent company, reflecting the minority shareholders' ownership in the subsidiary's net assets and income.

Consolidated Statement

Financial statements that aggregate the financial position and operations of a parent company and its subsidiaries, presenting them as a single economic entity.

Cash Flows

The aggregate monetary transactions entering and leaving a corporation, chiefly influencing its cash flow.

Consolidated Cost Of Goods Sold

The total cost of goods sold by a combined entity, including all subsidiaries, after eliminating intercompany transactions.