Refer to the diagram. Assume that nominal wages initially are set based on the price level P₂ and that the economy initially is operating at its full-employment level of output Q_f. In the short run, costpush inflation could best be shown as A) a leftward shift of aggregate supply from A $\mathrm { AS } _ { 2 } \text { to } \mathrm { AS } _ { 3 }$ B) a move from b to c on A $\mathrm { AS } _ { 2 }.$ C) a move from b to c to d. D) a move from b to f to d.

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The Answer of Refer to the diagram. Assume that nominal wages initially are set based on the price level P₂ and that the economy initially is operating at its full-employment level of output Q_f. In the short run, costpush inflation could best be shown as A) a leftward shift of aggregate supply from A $\mathrm { AS } _ { 2 } \text { to } \mathrm { AS } _ { 3 }$ B) a move from b to c on A $\mathrm { AS } _ { 2 }.$ C) a move from b to c to d. D) a move from b to f to d.

Refer to the Diagram AS2 to AS3\mathrm { AS } _ { 2 } \text { to } \mathrm { AS } _ { 3 }AS2​ to AS3​

Refer to the Diagram $\mathrm { AS } _ { 2 } \text { to } \mathrm { AS } _ { 3 }$