Figure 35-9

question 56

Multiple Choice

Figure 35-9.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 35-9.The shift of the aggregate-supply curve from AS₁ to AS₂

• A)results in a more favorable trade-off between inflation and unemployment.
• B)results in a more favorable trade-off between inflation and the growth rate of real GDP.
• C)represents an adverse shock to aggregate supply.
• D)represents a favorable shock to aggregate supply.

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