QUESTION 48 Figure 3. The left-hand graph shows a short-run aggregate-supply (SRAS) curve and two aggregate-demand (AD) curves. On the right-hand diagram, "Inf Rate" means "Inflation Rate." to P₁ AS 2 AD AS₁ Inf Rate Y D PC1 PC2 Y₂ Y₁ Refer to Figure 3. An increase in the price of oil could explain a. neither the shift of the aggregate-supply curve from AS1 to AS2 nor the shift of the Phillips curve from PC₁ to PC2. b. both the shift of the aggregate-supply curve from AS1 to AS2 and the shift of the Phillips curve from PC1 to PC2. c. 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. Od. 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 AS
QUESTION 48 Figure 3. The left-hand graph shows a short-run aggregate-supply (SRAS) curve and two aggregate-demand (AD) curves. On the right-hand diagram, "Inf Rate" means "Inflation Rate." to P₁ AS 2 AD AS₁ Inf Rate Y D PC1 PC2 Y₂ Y₁ Refer to Figure 3. An increase in the price of oil could explain a. neither the shift of the aggregate-supply curve from AS1 to AS2 nor the shift of the Phillips curve from PC₁ to PC2. b. both the shift of the aggregate-supply curve from AS1 to AS2 and the shift of the Phillips curve from PC1 to PC2. c. 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. Od. 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 AS
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question

Transcribed Image Text:QUESTION 48
Figure 3. The left-hand graph shows a short-run aggregate-supply (SRAS) curve and two aggregate-demand (AD) curves. On the
right-hand diagram, "Inf Rate" means "Inflation Rate."
AS 2
B
AS₁
KA
A
AD
Y₂ Y₁
Y
Refer to Figure 3. An increase in the price of oil could explain
P₂
P₁
Inf Rate
PC 1
PC2
a. neither the shift of the aggregate-supply curve from AS₁ to AS2 nor the shift of the Phillips curve from PC1 to PC2.
b. both the shift of the aggregate-supply curve from AS₁ to AS2 and the shift of the Phillips curve from PC₁ to PC2.
c. 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.
Od. 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.
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