Refer to the figures. If government policy can be used to affect the level of demand in the economy, these figures suggest that government policy:
A. can affect the level of output in the very short run, when prices are stuck.
B. can affect the level of output in the longer run, when prices are flexible.
C. cannot affect output in either the very short run or the longer run.
D. can be used to simultaneously affect the levels of output and prices.
A. can affect the level of output in the very short run, when prices are stuck.
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