Figure 12-1 -Refer to Figure 12-1. at Output Level Y₁

question 148

Multiple Choice

Figure 12-1
-Refer to Figure 12-1. At output level Y₁,

• A) potential output is greater than actual output.
• B) the economy is operating at a point outside its production possibilities curve.
• C) the actual unemployment rate is less than the natural rate of unemployment.
• D) aggregate demand will fall to restore equilibrium.