In the Stagflation Phase, a Decrease in Short-Run Aggregate Supply

Multiple Choice

In the stagflation phase, a decrease in short-run aggregate supply will generate

A) an increase in the inflation rate and in the unemployment rate.
B) an increase in the inflation rate and a decrease in the unemployment rate.
C) an increase in the inflation rate with no change in the unemployment rate.
D) a decrease in the inflation rate and an increase in the unemployment rate.