Refer to the information provided in Figure 26.3 below to answer the question(s) that follow. Figure 26.3Refer to Figure 26.3. Hurricane Katrina destroyed a large portion of the infrastructure along the Gulf of Mexico coast. This caused

A. the short-run aggregate supply curve to shift from AS1 to AS0.
B. the economy to move from Point B to Point A along AS1.
C. the short-run aggregate supply curve to shift from AS1 to AS2.
D. the economy to move from Point C to Point B along AS1.

Answer: C