Figure 35-9

question 46

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.Subsequent to the shift of the Phillips curve from PC₁ to PC₂,the curve will soon shift back to PC₁ if people perceive the

• A)increase in the inflation rate as a temporary aberration.
• B)economic boom as a temporary aberration.
• C)increase in the inflation rate as a sign of a new era of higher inflation.
• D)economic boom as a sign of a new era of higher economic growth.