Refer to the diagram. The move of the economy from c to e on short-run Phillips Curve PC2 would be explained by an
A) increase in aggregate demand in the economy.
B) increase in aggregate supply in the economy.
C) actual rate of inﬂation that is less than the expected rate.
D) actual rate of inﬂation that exceeds the expected rate.

Question

Refer to the diagram. The move of the economy from c to e on short-run Phillips Curve PC2 would be explained by an
A) increase in aggregate demand in the economy. 
B) increase in aggregate supply in the economy. 
C) actual rate of inﬂation that is less than the expected rate. 
D) actual rate of inﬂation that exceeds the expected rate.

Quizplus · Accepted Answer

The Answer of  Refer to the diagram. The move of the economy from c to e on short-run Phillips Curve PC2 would be explained by an
A) increase in aggregate demand in the economy. 
B) increase in aggregate supply in the economy. 
C) actual rate of inﬂation that is less than the expected rate. 
D) actual rate of inﬂation that exceeds the expected rate.

Refer to the Diagram