-The Reason That It Is Possible for the Economy in the Above

Multiple Choice

-The reason that it is possible for the economy in the above figure to be at equilibrium E₂ rather than at E₁ is that

A) in the short run the economy can produce more than it can in a long- run situation.
B) AD always shifts rightward and never shifts leftward.
C) the economy must be in a recession.
D) in the long run there is always less than full employment.