Figure 22-8

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. The shift of the aggregate-supply curve from AS₁ to AS₂ could be a consequence of

A) an increase in the money supply.
B) an adverse supply shock.
C) a decrease of output from Y₁ to Y₂.
D) a slow adjustment of people's expectation of the inflation rate.