-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 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 full-adjustment situation.
C) AD always shifts outward and never shifts inward.
D) the economy must be in a recession.