PRICE LEVEL a" a AS₂ Y₂ Y₂ QUANTITY OF OUTPUT AS, AD INFLATION RATE Refer to Figure 15. A significant increase in the world price of oil could explain PC, UNEMPLOYMENT RATE both the shift of the aggregate-supply curve from AS₁ to AS2 and the shift of the Phillips curve from PC₁ to PC₂. the shift of the aggregate-supply curve from AS₁ to AS2, but it could not explain the shift of the Phillips curve from PC₁ to PC₂- neither the shift of the aggregate-supply curve from AS, to AS₂ nor the shift of the Phillips curve from PC₁ to PC₂- the shift of the Phillips curve from PC₁ to PC2, but it could not explain the shift of the aggregate-supply curve from AS₁ to AS₂. }
PRICE LEVEL a" a AS₂ Y₂ Y₂ QUANTITY OF OUTPUT AS, AD INFLATION RATE Refer to Figure 15. A significant increase in the world price of oil could explain PC, UNEMPLOYMENT RATE both the shift of the aggregate-supply curve from AS₁ to AS2 and the shift of the Phillips curve from PC₁ to PC₂. the shift of the aggregate-supply curve from AS₁ to AS2, but it could not explain the shift of the Phillips curve from PC₁ to PC₂- neither the shift of the aggregate-supply curve from AS, to AS₂ nor the shift of the Phillips curve from PC₁ to PC₂- the shift of the Phillips curve from PC₁ to PC2, but it could not explain the shift of the aggregate-supply curve from AS₁ to AS₂. }
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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