graph shows a short-run aggregate-supply (SRAS) curve and two aggregate-demand (

Question

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. Inf Rate AS2 ::AD PC PC1 Refer to Figure 35-9. A significant increase in the world price of ail could explain OA. the shift of the Philps arve from PCI t° Ka br ncoud not epan me shft of the aggregate-ply ang from ASi to ASG- OB. neither the shith of the aggregate-supoly curve from AS to ASa nor the shift of the Phillips curve from PCs to PC OC. the shift of the apgregate-supply curve from AS: to ASs, but t couid not expiain the shit of the Philis urve from PC: to PCa D. soth the shift of the aggregate-supply curve from AS; to ASz and the shit of tne Philips curve from PCi to PCa

Explanation / Answer

Answer :- Option A). The shift of the Philips curve from PC1 to PC2, but it could not explain the shift of the aggregate supply from AS1 to AS2.

Conclusion :- Option A).

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