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Question 79

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Use the following to answer questions .
Exhibit: Using the Aggregate Demand/Aggregate Supply Model 2 Use the following to answer questions . Exhibit: Using the Aggregate Demand/Aggregate Supply Model 2   -(Exhibit: Using the Aggregate Demand/Aggregate Supply Model 2)  At output level Y<sub>K</sub>, A)  potential output is less than actual output. B)  there is a surplus of real GDP. C)  the unemployment rate exceeds the natural rate of unemployment. D)  over time aggregate demand will rise to restore long-run equilibrium.
-(Exhibit: Using the Aggregate Demand/Aggregate Supply Model 2) At output level YK,


A) potential output is less than actual output.
B) there is a surplus of real GDP.
C) the unemployment rate exceeds the natural rate of unemployment.
D) over time aggregate demand will rise to restore long-run equilibrium.

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