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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Question
Note:-
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![B
Y₂Y₁
A
AS₂
QUANTITY OF OUTPUT
AS,
AD
Refer to Figure 15. A significant increase in the world price of oil could explain
с
D
PC₁
UNEMPLOYMENT RATE
both the shift of the aggregate-supply curve from AS₁1 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.
O
neither the shift of the aggregate-supply curve from AS₁ to AS2 nor the shift of the Phillips curve from PC₁ to
PC₂.
F
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.
1:07:15 remaining](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa9c821e9-a894-4b3a-8872-23635d31f017%2F6e9f9226-49d3-4f9b-ae9a-3fb0d8bbd450%2Fgi1gw3r_processed.jpeg&w=3840&q=75)
Transcribed Image Text:B
Y₂Y₁
A
AS₂
QUANTITY OF OUTPUT
AS,
AD
Refer to Figure 15. A significant increase in the world price of oil could explain
с
D
PC₁
UNEMPLOYMENT RATE
both the shift of the aggregate-supply curve from AS₁1 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.
O
neither the shift of the aggregate-supply curve from AS₁ to AS2 nor the shift of the Phillips curve from PC₁ to
PC₂.
F
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.
1:07:15 remaining
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