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

question 90

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)Potential output exceeds Y₁.
• B)When output Y₁ is achieved,the actual rate of unemployment will exceed the natural rate of unemployment.
• C)When output Y₁ is achieved,the actual rate of unemployment will be less than the natural rate of unemployment.
• D)When output Y₁ is achieved,the actual rate of unemployment will equal the economy's natural rate of unemployment.