Use the graph below to answer the questions that follow a Which of the points A, B, C, or D can represent a long run equilibrium b Suppose that initially the economy is at point A If aggregate demand increases from AD 1 to AD 2 , which point represents short run equilibrium Which point represents the eventual long run equilibrium Briefly explain how the economy adjusts from the short run equilibrium to the long run equilibrium f

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Question: Use the graph below to answer the questions that follow. a.Which of the points A, B, C, or D can represent a long-run equilibrium? b.Suppose

Use the graph below to answer the questions that follow.

a.Which of the points A, B, C, or D can represent a long-run equilibrium?

b.Suppose that initially the economy is at point A.If aggregate demand increases from AD₁ to AD₂, which point represents short-run equilibrium? Which point represents the eventual long-run equilibrium?Briefly explain how the economy adjusts from the short-run equilibrium to the long-run equilibrium.

Use the graph below to answer the questions that follow. a.Which of

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