Question

reading charts and graphs
sample stock index
(2008–2013)
which conclusions can be made about the growth of
the economy? check all that apply
□ aggregate demand increased after 2009
□ aggregate demand increased between 2010 and
2011
□ the economy remained stable in 2008.
□ the economy experienced a sharp drop in growth
between 2008 and 2009
□ the economy grew weaker after a crash in 2010

Explanation:

1. Aggregate demand increased after 2009: After 2009, the index level (which reflects economic activity) rises, indicating increased aggregate demand as economic growth (reflected by the index) increases.
2. Aggregate demand increased between 2010 and 2011: The index rises from 2010 to 2011, showing growth in economic activity, which implies increased aggregate demand.
3. The economy remained stable in 2008: In 2008, the index starts high but then drops sharply, so it was not stable. Eliminate this.
4. The economy experienced a sharp drop in growth between 2008 and 2009: The index falls sharply from 2008 to 2009, showing a sharp drop in economic growth.
5. The economy grew weaker after a crash in 2010: After 2010, the index rises, so the economy grew stronger, not weaker. Eliminate this.

Answer:

• Aggregate demand increased after 2009
• Aggregate demand increased between 2010 and 2011
• The economy experienced a sharp drop in growth between 2008 and 2009