Refer to the diagram. Assume that nominal wages initially are set based on the price level P2 and that the economy initially is operating at its full-employment level of output Qf. In terms of this diagram, the long-run aggregate supply curve Multiple Choice is a vertical line extending from Qf upward through e, b, and d. is a horizontal line extending from P2 rightward through f, b, and g. may be either AS1, AS2, or AS3 depending on whether the price level is P1, P2, or P3. is AS2.
The horizontal axis is labeled real output. Points Q 1, Q subscript f, and Q 2 are marked on the horizontal axis from left to right. The vertical axis is labeled
Refer to the diagram. Assume that nominal wages initially are set based on the price level P2 and that the economy initially is operating at its full-employment level of output Qf. In terms of this diagram, the long-run
Multiple Choice
is a vertical line extending from Qf upward through e, b, and d.
is a horizontal line extending from P2 rightward through f, b, and g.
may be either AS1, AS2, or AS3 depending on whether the price level is P1, P2, or P3.
is AS2.
![Price Level
P3
P₂
P₁
0
f
Q₁
Qf
Real Output
Q₂
AS3
AS₂
AS₁](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd80ccd3b-f207-4569-a0c9-dab8b67382eb%2F0cc9a34a-d28a-484d-a8e5-72c7f0116dc7%2F6v17j86_processed.png&w=3840&q=75)
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