Figure 15-2. -Refer to Figure 15-2. the Appearance of the Long-Run Aggregate-Supply

question 424

Multiple Choice

Figure 15-2.

-Refer to Figure 15-2. 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.

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