Refer to Figure 9.2 for the Following Questions

Multiple Choice

Refer to Figure 9.2 for the following questions.
Figure 9.2

-Suppose that in Figure 9.2, the level of GDP associated with point N is potential GDP. If the Australian economy is currently at point K:

A) firms are operating above capacity.
B) the economy is at full employment.
C) the economy is in equilibrium below full employment.
D) the level of unemployment is equal to the natural rate.