Final answer:
Snowdonia experiencing fixed capacity growth in year 1 suggests it is at a peak of the business cycle. Fixed capacity growth is shown as a horizontal movement on a graph between two points, while long-run economic growth is illustrated as a rightward shift on the AD/AS diagram, signifying an increase in potential GDP.
Step-by-step explanation:
If Snowdonia is experiencing fixed capacity growth in year 1, this indicates that it is not currently expanding or contracting significantly, but rather maintaining a consistent level of production. In terms of the business cycle, this would most closely resemble a peak, where the economy is at its maximum output without moving into an expansion or contraction phase.
Fixed capacity growth on a graph is demonstrated as a horizontal movement from one point to another, maintaining the same level of output, which suggests that there is no change in the total capacity of production. Hence, without additional information, it is not possible to give specific points such as Point A to Point B or Point C for this question.
Long-term economic growth would be illustrated as a movement from a lower point on the production possibilities curve or the AD/AS diagram to a higher one, representing an increase in potential GDP. This is typically shown as a shift of the aggregate supply curve to the right. Again, without indicating where on the curve or diagram we start, or the specific context of Point A, Point B, and Point C, it is not possible to answer this part accurately.
In the context of the AD/AS diagram, long-run economic growth due to productivity increases will be represented by a gradual shift to the right of aggregate supply. This means that if the economy's capacity increases, the potential GDP line, which is vertical, will shift to the right as well.