Refer to the Diagram Below

Multiple Choice

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

A) a leftward shift of aggregate supply from AS₂ to AS₃.
B) a move from b to c on AS₂.
C) a move from b to c to d.
D) a move from b to f to d.