Refer to the fiGures

question 102

Multiple Choice

Refer to the figures. As the economy moves from the very short run to the longer run, we would expect

• A) the representation of the economy to move from Figure A to Figure B.
• B) the representation of the economy to move from Figure B to Figure A.
• C) demand shocks to be eliminated.
• D) the economy to gravitate to P₁.

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