Use the Figure Below to Answer the Following Question(s)

question 89

Multiple Choice

Use the figure below to answer the following question(s) . Figure 9-2
Which of the following is true for the economy depicted in Figure 9-2?

• A) Output equals potential real GDP.
• B) The actual rate of unemployment equals the natural rate of unemployment.
• C) The output is sustainable in the long run.
• D) All of the above statements are true.

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Definitions:

Demand Curve

A graph showing the relationship between the price of a good and the quantity demanded.

Unit Elastic

Describes a situation where a percentage change in the price of a good or service results in an equal percentage change in the quantity demanded or supplied.

Cheddar Cheese

A relatively hard, off-white or orange, natural cheese originating from the village of Cheddar in England.

Total Revenue

The total income generated from selling goods or services, calculated by multiplying the price by the quantity sold.