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Refer to the Graph Above

Question 18

Multiple Choice

Refer to the graph above. Stagflation in the short run is best represented as resulting from a shift of: A) AD<sub>1</sub> to AD<sub>2</sub> given a stable AS<sub>1</sub> curve B) AD<sub>2</sub> to AD<sub>1</sub> given a stable AS<sub>1</sub> curve C) AS<sub>1</sub> to AS<sub>2</sub> given a stable AD<sub>1</sub> curve D) AS<sub>2</sub> to AS<sub>1</sub> given a stable AD<sub>1</sub> curve Refer to the graph above. Stagflation in the short run is best represented as resulting from a shift of:


A) AD1 to AD2 given a stable AS1 curve
B) AD2 to AD1 given a stable AS1 curve
C) AS1 to AS2 given a stable AD1 curve
D) AS2 to AS1 given a stable AD1 curve

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