Refer to Scenario 35-1. The short-run effects of rising world commodity prices are shown by

A) moving to the right along the short-run Phillips curve.
B) moving to the left along the short-run Phillips curve.
C) shifting the short-run Phillips curve right.
D) shifting the short-run Phillips curve left.

Rising world commodity prices, such as oil and foodstuffs, typically lead to higher inflation. In the context of the short-run Phillips curve, which illustrates the trade-off between inflation and unemployment, higher inflation due to rising commodity prices would shift the short-run Phillips curve to the right. This shift indicates that for any given level of unemployment, the inflation rate is higher.