Explain why Situation A is a full medium run equilibrium and Situation B, C, D and E are not a full medium run equilibrium.
A.
In situation A, output is at potential and unemployment is at its natural rate. In all other situations, the economies are in long-run equilibrium.
B.
In situation A, output is at potential and unemployment is at its natural rate. In all other situations, this is not true.
C.
Situation A, where output is at potential and unemployment is at its natural rate, represents a long-run equilibrium. In all other situations, the economies are in a medium-run equilibrium.