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.
Correct Answer:

Verified
Correct Answer:
Verified
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