Refer to the diagram. Assume that nominal wages initially are set on the basis of the price level P 2 and that the economy initially is operating at its full-employment level of output Q f . In terms of this diagram, the long-run aggregate supply curve:
A. is AS 2 .
B. is a vertical line extending from Q f upward through e, b, and d.
C. may be either AS 1 , AS 2 , or AS 3 depending on whether the price level is P 1 , P 2 , or P 3 .
D. is a horizontal line extending from P 2 rightward through f, b, and g.
B. is a vertical line extending from Q f upward through e, b, and d.
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