12.3 Shocks to the System

Multiple Choice

12.3 Shocks to the System
Refer to the information provided in Figure 12.3 below to answer the questions that follow. Figure 12.3
-Refer to Figure 12.3. Cost-push inflation occurs if

A) the economy moves from Point A to Point B on aggregate supply curve AS₁.
B) the economy moves from Point A to Point C on the aggregate supply curve AS₁.
C) the aggregate supply curve shifts from AS₁ to AS₀.
D) the aggregate supply curve shifts from AS₁ to AS₂.