Suppose the Economy Is at Its Potential Output Level

Multiple Choice

Suppose the economy is at its potential output level.Which of the following best characterizes how the economy is producing?  

A)  The economy is producing less than it is capable of producing. 
B)  The economy is producing the maximum it can produce given resource constraints. 
C)  The economy is producing beyond its productive capacity. 
D)  The economy is producing at its minimum capacity.