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

question 172

Multiple Choice

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

• A) in the long run there is always less than full employment.
• B) in the short run the economy can produce more than it can in a long-run full-adjustment situation.
• C) AD always shifts outward and never shifts inward.
• D) the economy must be in a recession.

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Definitions:

Advantage

Advantage refers to a favorable position or condition that enhances the probability of success or effectiveness in a competitive environment.

Responsibilities

Duties or obligations that an individual or organization is required or expected to perform.

Decentralization

The distribution of decision-making powers and operational activities away from a central authoritative location or group.

Advantage

A condition or circumstance that puts one in a favorable or superior position.