Multiple Choice
Refer to the figures. In terms of representing the economy,
A) neither Figure A nor Figure B consistently represents either the very short run or the longer run.
B) demand shocks affect levels of output and employment in Figure A; demand shocks have no effect in Figure B.
C) Figure A represents the very short run, where output is fixed, and Figure B represents the longer run.
D) Figure B represents the very short run, where prices are sticky, and Figure A represents the longer run.
Correct Answer:

Verified
Correct Answer:
Verified
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