Refer to the Graphs, Where the Subscripts on the Labels $Q _ { 1 } .$

Multiple Choice

Refer to the graphs, where the subscripts on the labels denote years 1 and 2. In year 1 the economy

A) is in long-run equilibrium at output $Q _ { 1 } .$
B) is in short-run equilibrium at output $Q _ { 1 }$ , but not in long-run equilibrium.
C) cannot be in long-run equilibrium because output changes in period 2.
D) is in a recession, based on output $Q _ { 1 }$ being below output
$Q _ { 2 }$