Figure 23-2. -Refer to Figure 23-2.The Appearance of the Long-Run Aggregate-Supply (LRAS)curve

question 371

Multiple Choice

Figure 23-2.
-Refer to Figure 23-2.The appearance of the long-run aggregate-supply (LRAS) curve

• A) is inconsistent with the concept of monetary neutrality.
• B) is consistent with the idea that point A represents a long-run equilibrium but not a short-run equilibrium when the relevant short-run aggregate-supply curve is AS₁.
• C) indicates that Y₁ is the natural rate of output.
• D) All of the above are correct.

---

Definitions:

Indianapolis 500

A prestigious motorsport event held annually at the Indianapolis Motor Speedway, known for its 500-mile race.

Business Ventures

New business enterprises or commercial undertakings, often involving some risk.

Unsung Innovators

Individuals who have made significant contributions to innovation and progress but have not received widespread recognition or acclaim.

Early Successes

Initial accomplishments or achievements made in the beginning stages of an endeavor or career.