Exhibit 10.1 -Refer to Exhibit 10.1, Which Shows the Short-Run Aggregate Supply

Multiple Choice

Exhibit 10.1

-Refer to Exhibit 10.1, which shows the short-run aggregate supply (SRAS) curve of an economy. To the left of Y₁, _____

A) output levels are at the economy's potential.
B) output levels are more than the economy's potential.
C) output levels are less than the economy's potential.
D) unemployment is at the natural rate.
E) unemployment is lower than the natural rate.