FIGURE 24-5 -Refer to Figure 24-5.If the Economy Is Currently in Equilibrium

Multiple Choice

FIGURE 24-5
-Refer to Figure 24-5.If the economy is currently in equilibrium at E₃,the concept of asymmetrical adjustment of the AS curve suggests that

A) the economy will attain potential output faster if there is no intervention by the government.
B) a decrease in the price level will induce a rightward shift of AS.
C) the return of the economy to potential output may be very slow without government intervention.
D) the economy will never return to potential output.
E) the price level is constant regardless of the level of equilibrium income.