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

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In the short run, an economy can produce at a level higher than its long-run potential due to factors such as increased demand and utilization of resources. This can result in equilibrium being at E₂ instead of E₁. However, in the long run, the economy will eventually return to its potential output level, represented by the LRAS curve, which intersects with the AD curve at E₁.

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