Figure 15-2. -Refer to Figure 15-2. the Appearance of the Long-Run Aggregate-Supply

Multiple Choice

Figure 15-2.

-Refer to Figure 15-2. The appearance of the long-run aggregate-supply (LRAS) curve

A) is inconsistent with the concept of monetary neutrality.
B) is consistent with the idea that point A represents a long-run equilibrium but not a short-run equilibrium when the relevant short-run aggregate-supply curve is AS₁.
C) indicates that Y₁ is the natural rate of output.
D) All of the above are correct.