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Use the Figure Below to Answer the Following Questions

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Use the figure below to answer the following questions.
Use the figure below to answer the following questions.     Figure 26.3.2 -Refer to Figure 26.3.2. Consider statements (1) and (2) and select the correct answer. (1)  The economy of Mythlo is experiencing an above full-employment equilibrium. (2)  SAS will automatically shift rightward as the economy adjusts to long-run equilibrium. A) (1) is true; (2) is false. B) (2) is true; (1) is false. C) (1) and (2) are false. D) (1) and (2) are true. E) (1) is true; (2) is true only if the LAS curve shifts rightward at the same time.
Figure 26.3.2
-Refer to Figure 26.3.2. Consider statements (1) and (2) and select the correct answer. (1) The economy of Mythlo is experiencing an above full-employment equilibrium.
(2) SAS will automatically shift rightward as the economy adjusts to long-run equilibrium.

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Definitions:

Stock Price

The present rate at which a company's stock is bought and sold on the stock exchange.

Present Value

The present worth of a future amount of money or sequence of cash payments, calculated using a particular return rate.

Dividends

Payments made by a corporation to its shareholder members, usually derived from the company's earnings.

U.S. Companies

Businesses that are incorporated, operate, or have their primary base of operations within the United States.

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