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(Solved): Refer to Figure 4. Suppose points F and G on the right-hand graph represent two possible outcomes f ...
Refer to Figure 4. Suppose points F and G on the right-hand graph represent two possible outcomes for an imaginary economy in the year 2020, and those two points correspond to points B and C, which shows the price level in 2020 respectively, on the left-hand graph. Also, suppose we know that the price index equaled 120 in 2019. Then the numbers 115 and 130 on the vertical axis of the left-hand graph would have to be replaced by a. 155 and 175 , respectively. b. 138 and 156 , respectively. c. 137.5 and 154.75 , respectively. d. 135 and 150 , respectively.