Multiple Choice
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 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.
Correct Answer:

Verified
Correct Answer:
Verified
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