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The Reason That It Is Possible for the Economy in the Above

Question 145

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.

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