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Refer to the fiGure

Question 195

Multiple Choice

  Refer to the figure. Assuming this market is representative of the economy as a whole, this economy A)  is highly susceptible to inflation. B)  faces fluctuating output levels whenever there is a demand shock. C)  is capable of always producing at its optimal capacity. D)  is largely immune to business cycles. Refer to the figure. Assuming this market is representative of the economy as a whole, this economy


A) is highly susceptible to inflation.
B) faces fluctuating output levels whenever there is a demand shock.
C) is capable of always producing at its optimal capacity.
D) is largely immune to business cycles.

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