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-Refer to Figure 11-8

question 81

Multiple Choice

  -Refer to Figure 11-8.If Y<sub>FE</sub> represents the full-employment level of output,what can we say about the state of the economy at Y<sub>1</sub>? A)  It is in recession. B)  It is in expansion. C)  It is in equilibrium,but above full employment. D)  It is not in equilibrium,and output will increase. E)  It is not in equilibrium,and output will fall.
-Refer to Figure 11-8.If YFE represents the full-employment level of output,what can we say about the state of the economy at Y1?

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