-The reason that it is possible for the economy in the above figure to be at equilibrium E₂rather than at E₁is that A) in the short run the economy can produce more than it can in a long- run situation. B) AD always shifts rightward and never shifts leftward. C) the economy must be in a recession. D) in the long run there is always less than full employment.

Question

Quizplus · Accepted Answer

In the short run, the economy can produce beyond its long-run potential due to factors like increased demand or temporary resource utilization, allowing it to be at equilibrium E2.

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