Figure 12-2 -Refer to Figure 12-2.Suppose That the Level of GDP Associated

Multiple Choice

Figure 12-2
-Refer to Figure 12-2.Suppose that the level of GDP associated with point N is potential GDP.If the U.S.economy is currently at point K,

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