Refer to the Diagram $\mathrm { AS } _ { 2 }$

Multiple Choice

Refer to the diagram. Assume that nominal wages initially are set based on the price level P₂ and that the economy initially is operating at its full-employment level of output Q_f. In terms of this diagram, the long-run aggregate supply curve

A) $\mathrm { AS } _ { 2 }$
B) is a vertical line extending from $Q _ { f }$ upward through e, b, and d.
C) may be either A $A S _ { 1 } , A S _ { 2 } , \text { or } A S _ { 3 }$ depending on whether the price level is
$P _ { 1 } , P _ { 2 } \text {, or } P _ { 3 }$
D) is a horizontal line extending from $P _ { 2 }$ rightward through f, b, and g.