Figure 35-9

Multiple Choice

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.A significant increase in the world price of oil could explain

A) the shift of the aggregate-supply curve from AS₁ to AS₂,but it could not explain the shift of the Phillips curve from PC₁ to PC₂.
B) the shift of the Phillips curve from PC₁ to PC₂,but it could not explain the shift of the aggregate-supply curve from AS₁ to AS₂.
C) both the shift of the aggregate-supply curve from AS₁ to AS₂ and the shift of the Phillips curve from PC₁ to PC₂.
D) neither the shift of the aggregate-supply curve from AS₁ to AS₂ nor the shift of the Phillips curve from PC₁ to PC₂.