Question

Within the AD-AS model, a phenomenon known as stagflation is best represented by a shift in which curve, and with what consequence for the short-run equilibrium? 

A Aggregate Demand (AD) shifts right, causing higher inflation and higher output.
B Aggregate Demand (AD) shifts left, causing lower inflation and lower output.
C Short-Run Aggregate Supply (SRAS) shifts right, causing lower inflation and lower output.
D Short-Run Aggregate Supply (SRAS) shifts left, causing higher inflation and lower output.
E None of these
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