FIGURE 24-5 -Refer to Figure 24-5.The Economy Is Not in Long-Run Equilibrium

question 58

Multiple Choice

FIGURE 24-5
-Refer to Figure 24-5.The economy is not in long-run equilibrium at E₁ because the

• A)AD₁ curve will shift back to AD₀ due to an increase in the price level.
• B)AD₁ curve will shift back to the left due to a fall in current consumption.
• C)AS will shift to the left due to an increase in wages.
• D)AS will shift to the left due to an increase in the price level.
• E)AS will shift to the right due to a decrease in the price level.