Suppose the Economy Is Producing Beyond Its Potential Output Level

Multiple Choice

Suppose the economy is producing beyond its potential output level.Which of the following best describes the state of the economy?  

A)  The economy is producing beyond the natural rate of unemployment. 
B)  The economy is producing at its maximum capacity. 
C)  The economy is producing less than its productive capacity. 
D)  The economy is producing at less than its natural rate of unemployment.