Identify the 3 curves in the above figure.
A. (1) is short-run aggregate supply, (2) is long-run aggregate supply, (3) is aggregate demand.
B. (1) is long-run aggregate supply, (2) is aggregate demand, (3) is short-run aggregate supply.
C. (1) is aggregate demand, (2) is short-run aggregate supply, (3) is long-run aggregate supply.
D. (1) is long-run aggregate supply, (2) is short-run aggregate supply, (3) is aggregate demand.
Answer: D
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