Figure 35-9

question 43

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.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:

Expected Revenue

The predicted amount of money that a business will bring in from its operations or activities, typically within a certain period.

English Auction

A method of auctioning in which bidders publicly submit increasingly higher bids until no higher bid is offered, and the highest bidder wins the item.

Reservation Price

The highest price a consumer is willing to pay for a particular good or service, reflecting the limit of their willingness to purchase.

Expected Revenue

The total amount of money anticipated to be received from sales of goods or services, based on expected sales volumes and prices.