Figure 36-8

Multiple Choice

Figure 36-8.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 36-8.Subsequent to the shift of the Phillips curve from PC₁ to PC₂,the curve will soon shift back to PC₁ if people perceive the

A) increase in the inflation rate as a temporary aberration.
B) economic boom as a temporary aberration.
C) increase in the inflation rate as a sign of a new era of higher inflation.
D) economic boom as a sign of a new era of higher economic growth.