The three figures below show the phases of a disinflation. In part (i), the economy is experiencing a sustained inflation at E1. FIGURE 29-4 Refer to Figure 29-4, part (ii). The upward shift of the AS curve in Phase 2 is normally caused by an increase in the unemployment rate. inflationary expectations that cause wages to continue rising. the Bank of Canada engaging in an expansionary monetary policy. workers accepting a reduction in their wages. an increase in the productivity of workers