Refer to the Diagram Given Below

Multiple Choice

Refer to the diagram given below. Assume that the nominal wages of workers are initially set on the basis of the price level P₂ and that the economy is initially operating at its full-employment level of output Q_f.In the long run, demand-pull inflation could best be shown as:

A) a movement from point b to point c on AS₂.
B) a movement from point a to point b.
C) a shift of the aggregate supply curve from AS₂ to AS₁.
D) a movement from point b to point d.