Figure 35-3

question 2

Multiple Choice

Figure 35-3.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 35-3.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:

Zero Defects

A management philosophy aiming at reducing and ideally eliminating defects and errors in manufacturing and service processes.

Quality

The degree to which a product or service meets or exceeds customer expectations.

Lean Environment

A management philosophy focusing on reducing waste and improving efficiency in the production process, often resulting in cost savings and higher quality products.

Operations

Activities carried out by a company to produce, buy, sell goods or services in the most efficient and effective manner.