Figure 35-5 
-Refer to Figure 35-5. 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.
Correct Answer:
Verified
Q193: Figure 35-5 Q194: If unemployment is above its natural rate, Q195: If inflation expectations rise, the short-run Phillips Q196: If a central bank increases the money Q197: A politician blames the Federal Reserve for Q199: An adverse supply shock causes inflation to Q200: If the unemployment rate is below the Q201: A shock increases the costs of production. Q202: Suppose OPEC is unable to come to Q203: If a central bank attempts to lower
A)rise
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