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

question 413

Multiple Choice

-The reason that it is possible for the economy in the above figure to be at equilibrium E₂ rather than at E₁ is 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.

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Definitions:

Mean

The average of a set of numbers, calculated by adding all the numbers together and dividing by the count of numbers.

Annual Revenue

The total income generated by a company or organization in one fiscal year before any deductions are made.

Standard Deviation

A metric that reflects the degree of spread or scattering of values within a collection, illustrating the deviation of values from the central mean.

Probability

An assessment of the probability that a specific event will happen.