The Figure Below Shows the Short-Run Aggregate Demand and Supply

Multiple Choice

The figure below shows the short-run aggregate demand and supply curves of an economy. When real GDP is at Y₂, _____.

A) potential output is greater than actual output.
B) there is a recessionary gap.
C) the price level is likely to fall.
D) the actual unemployment rate is less than the natural rate of unemployment.
E) aggregate demand is likely to increase to restore equilibrium.