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

Multiple Choice

-The reason that it is possible for the economy in the above figure to be at equilibrium point E? rather than at equilibrium point E? 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.