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

Multiple Choice

Use the figure below to answer the following question(s) .
Figure 9-2
-Figure 9-2 indicates that the output of the economy, y₁, is

A) greater than the economy's long-run capacity.
B) equal to the economy's long-run capacity.
C) less than the economy's long-run capacity.
D) in short-run equilibrium but not long-run equilibrium.