Multiple Choice
Figure 22-8. 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." 
-Refer to Figure 22-8. Which of the following events could explain the shift of the aggregate-supply curve from AS1 to AS2?
A) a reduction in firms' costs of production
B) a reduction in taxes on consumers
C) an increase in the price level
D) an increase in the world price of oil
Correct Answer:
Verified
Correct Answer:
Verified
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