Use the Following to Answer Questions

Multiple Choice

Use the following to answer questions .
Exhibit: Fiscal Policy 1
-(Exhibit: Fiscal Policy 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.