Exhibit 16.1 -Refer to Exhibit 16.1, Which Shows the Relationship Between an the Relationship

Multiple Choice

Exhibit 16.1

-Refer to Exhibit 16.1, which shows the relationship between an economy's potential output, price level, and real GDP. According to those who favor an active approach to policy, the economy will end up at _____ when it attains the potential output level.

A) point A
B) point B
C) point C
D) a point between point A and point B
E) a point between point A and point C