Multiple Choice
The reason that it is possible for the economy in the above figure to be at equilibrium E₂ rather than at E₁ is that
A) in the long run there is always less than full employment.
B) in the short run the economy can produce more than it can in a long-run situation.
C) AD always shifts rightward and never shifts leftward.
D) the economy must be in a recession.
Correct Answer:

Verified
Correct Answer:
Verified
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