Multiple Choice
Figure 17-8. 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 17-8. The shift of the aggregate-supply curve from AS1 to AS2 could be a consequence of
A) an increase in the money supply.
B) an adverse supply shock.
C) a decrease of output from Y1 to Y2.
D) a slow adjustment of people's expectation of the inflation rate.
Correct Answer:
Verified
Correct Answer:
Verified
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