Refer to the above figures. Which panel(s) represent the effect of a decrease in labor productivity?

Which of the following changes in the aggregate demand and aggregate supply curves in likely to result in stagflation?

A) The aggregate demand curve shifts to the left when the economy is in the classical range of the aggregate supply curve B) The aggregate demand curve shifts to the right in classical range C) The aggregate demand curve shifts to the right when the economy is in the Keynesian range of the aggregate supply curve D) The aggregate supply curve shifts left E) The aggregate supply curve shifts right

If Pepsi decided to raise its price, you would expect the price of Coca Cola

A) to fall. B) to raise. C) Their prices should have no relationship because Pepsi and Coca Cola are not related. D) None of the above answers are correct.