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
Which of the following is true for the economy depicted in Figure 9-2?

A) Potential output equals y₁.
B) It would be impossible for this economy to achieve an output greater than y₁.
C) When output y₁ is achieved, the actual rate of unemployment will exceed the natural rate of unemployment.
D) When output y₁ is achieved, the actual rate of unemployment will be less than the natural rate of unemployment.