Figure 35-1

question 83

Multiple Choice

Figure 35-1.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 35-1.Suppose points F and G on the right-hand graph represent two possible outcomes for an imaginary economy in the year 2012,and those two points correspond to points B and C,respectively,on the left-hand graph.Then it is apparent that the price index equaled

• A)130 in 2011.
• B)115 in 2011.
• C)110 in 2011.
• D)100 in 2011.

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Definitions:

Debt-equity Ratio

A financial metric assessing a corporation's leverage, obtained by dividing all liabilities by the equity held by shareholders.

Semi-annually

Occurring or calculated twice a year, typically in the context of interest payments or other financial evaluations.

Market Value

The price at which trading of a service or asset is currently occurring in the market.

Cost of Equity

A theoretical payment made by a corporation to its stockholders to reward them for the risk involved in investing their funds.