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Use the Figure Below to Answer the Following Question(s)

Question 145

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Use the figure below to answer the following question(s) . Figure 10-16
Use the figure below to answer the following question(s) . Figure 10-16 Suppose an economy is currently operating at output Y<sub>1</sub> associated with AD<sub>1</sub> and SRAS<sub>1</sub>, shown in Figure 10-16. Initially, the output of this economy is A) above its potential, and the rate of unemployment is greater than the natural rate. B) below its potential, and the rate of unemployment is greater than the natural rate. C) above its potential, and the rate of unemployment is less than the natural rate. D) below its potential, and the rate of unemployment is less than the natural rate. Suppose an economy is currently operating at output Y1 associated with AD1 and SRAS1, shown in Figure 10-16. Initially, the output of this economy is


A) above its potential, and the rate of unemployment is greater than the natural rate.
B) below its potential, and the rate of unemployment is greater than the natural rate.
C) above its potential, and the rate of unemployment is less than the natural rate.
D) below its potential, and the rate of unemployment is less than the natural rate.

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