Figure 12-2 -Refer to Figure 12-2. at Output Level Y_r

question 33

Multiple Choice

Figure 12-2
-Refer to Figure 12-2. At output level Y_r,

• A) potential output is greater than actual output.
• B) the expected price level equals actual price level.
• C) the actual unemployment rate is less than the natural rate of unemployment.
• D) aggregate demand will fall over time to restore equilibrium.

---

Definitions:

Limited Liability Company

An organizational setup that blends the limited liability perks of a corporation with the straightforward taxation process of partnerships or sole proprietorships.

Liability Limits

The maximum amount of coverage an insurance policy provides, representing the most an insurance company will pay for damages or losses.

Misconduct

Improper or unlawful behavior by a person in a position of authority or trust.

Risks

The potential for loss, damage, or any other undesirable outcome resulting from internal or external vulnerabilities.