Figure 17-8

question 315

Multiple Choice

Figure 17-8. 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 17-8. 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:

Theater

A branch of performing arts that involves live performers, actors, or actresses, presenting a real or imagined event before a live audience in a specific place.

African American Culture

The cultural contributions, traditions, and lived experiences unique to African Americans, shaped by historical, social, and political factors in the United States.

Plantations

Large estates or farms where crops like cotton, tobacco, and sugar are cultivated, historically often by enslaved or indentured laborers.

Cities

Urban areas with high population density and infrastructure of built environment.