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Figure 35-9

Question 56

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Figure 35-9.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." Figure 35-9.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 35-9.The shift of the aggregate-supply curve from AS<sub>1</sub> to AS<sub>2</sub> A) results in a more favorable trade-off between inflation and unemployment. B) results in a more favorable trade-off between inflation and the growth rate of real GDP. C) represents an adverse shock to aggregate supply. D) represents a favorable shock to aggregate supply. Figure 35-9.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 35-9.The shift of the aggregate-supply curve from AS<sub>1</sub> to AS<sub>2</sub> A) results in a more favorable trade-off between inflation and unemployment. B) results in a more favorable trade-off between inflation and the growth rate of real GDP. C) represents an adverse shock to aggregate supply. D) represents a favorable shock to aggregate supply.
-Refer to Figure 35-9.The shift of the aggregate-supply curve from AS1 to AS2


A) results in a more favorable trade-off between inflation and unemployment.
B) results in a more favorable trade-off between inflation and the growth rate of real GDP.
C) represents an adverse shock to aggregate supply.
D) represents a favorable shock to aggregate supply.

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