Question

Sample Stock Index

(2008–2013)

A graph titled Sample Stock Index from 2008 to 2013 has year on the x-axis and Index level on the y-axis, from 6,000 to 15,000 in increments of 3,000. In 2008, the index level decreased until it reached the lowest point in 2009. In 2009, the index level began to rise steadily through 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.

Answer 1

Correct answers:
- Aggregate demand increased after 2009. (Yes — the index rises steadily after 2009, indicating improving demand/confidence.)
- Aggregate demand increased between 2010 and 2011. (Yes — the index continues to rise in that interval.)
- The economy experienced a sharp drop in growth between 2008 and 2009. (Yes — the index falls to its lowest point in 2009.)

Not correct:
- The economy remained stable in 2008. (No — the index was falling in 2008.)
- The economy grew weaker after a crash in 2010. (No — there is no crash in 2010; the index rises after 2009.)