Figure 22-8

question 118

Multiple Choice

Figure 22-8. 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 22-8. 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.

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Definitions:

Sample Information

Data or observations collected from a subset of a larger population, used to estimate or infer characteristics about the whole population.

EMV

Expected Monetary Value; a financial concept that calculates the average outcome when the future includes scenarios that may or may not happen.

Decision Tree

A graphical representation used to visualize the path of decisions and their possible consequences, including outcomes, resources, cost, and utility.

Revenue Management

Revenue Management is the strategic analysis and optimization of sales and inventory to maximize profitability, often used in airline, hotel, and other service industries.