Refer to the ﬁgures. In terms of representing the economy,
A) neither Figure A nor Figure B consistently represents either the very short run or the longer run.
B) demand shocks affect levels of output and employment in Figure A; demand shocks have no effect in Figure B.
C) Figure A represents the very short run, where output is ﬁxed, and Figure B represents the longer run.
D) Figure B represents the very short run, where prices are sticky, and Figure A represents the longer run.

Question

Refer to the ﬁgures. In terms of representing the economy,
A) neither Figure A nor Figure B consistently represents either the very short run or the longer run. 
B) demand shocks affect levels of output and employment in Figure A; demand shocks have no effect in Figure B. 
C) Figure A represents the very short run, where output is ﬁxed, and Figure B represents the longer run. 
D) Figure B represents the very short run, where prices are sticky, and Figure A represents the longer run.

Quizplus · Accepted Answer

The Answer of  Refer to the ﬁgures. In terms of representing the economy,
A) neither Figure A nor Figure B consistently represents either the very short run or the longer run. 
B) demand shocks affect levels of output and employment in Figure A; demand shocks have no effect in Figure B. 
C) Figure A represents the very short run, where output is ﬁxed, and Figure B represents the longer run. 
D) Figure B represents the very short run, where prices are sticky, and Figure A represents the longer run.

Refer to the ﬁGures