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Which Statement Is TRUE with Respect to Short-Run and Long-Run

Question 98

Multiple Choice

Which statement is TRUE with respect to short-run and long-run aggregate supply?


A) The economy can be on both curves simultaneously.
B) If the economy is on the short-run aggregate supply curve, it cannot also be on the long-run aggregate supply curve.
C) If the economy is on the long-run aggregate supply curve, it cannot also be on the short-run aggregate supply curve.
D) The economy can never rest on both curves simultaneously.

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