Chapter 15, Problem 20AA

a.

To determine

To find:The man holding the door in the given figure and the job done by the man.

Explanation of Solution

The man holding the door is the Chairman of the Federal Reserve. The job of the chairman is to fulfill the objectives set by the Federal Reserve. It is the responsibility of the chairman that more employment opportunities should be created, inflation rates should be stable and the long-term interest rates should be moderate.

b.

To determine

To find:The representation made by dragon.

Explanation of Solution

The dragon represents inflation that is arising in the economy.Inflation is the situation where the prices of products and services become high for a longer period of time. This situation causes a decrease in the purchasing power of the economy.

c.

To determine

To explain:The reason for man looks unhappy while welcoming the dragon.

Explanation of Solution

The reason for which the man who is the Chairman of the Federal Reserve looks unhappy while welcoming the dragon is that the dragon is inflation. Inflation causes an increase in the prices of products and services in the economy which causes a decrease in the purchasing power of people. In the situation of inflation, living for general people becomes difficult.