Exhibit 10.2 -Refer to Exhibit 10.2, Which Shows the Short-Run Aggregate Supply

Multiple Choice

Exhibit 10.2

-Refer to Exhibit 10.2, which shows the short-run aggregate supply curve of an economy. When real GDP is 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.