Figure 35-8. The left-hand graph shows a short-run aggregate-supply (SRAS) curve and two aggregate-demand (AD) curves. C the right-hand diagram, "Inf Rate" means "Inflation Rate." A3 AD AS Y Inf Rate PC PC YY Refer to Figure 35-8. Faced with the shift of the Phillips curve from PC, to PC, policymakers will a ask whether the shift is temporary or permanent. Ob be concerned with how people adjust their expectations of inflation as a result of the shift. Oc. face, as well, a decision as to whether to accommodate the shock Od All of the above are correct