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Refer to the fiGures

Question 242

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. 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.

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