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-Refer to Figure 11-8

Question 81

Multiple Choice

-Refer to Figure 11-8.If Y<sub>FE</sub> represents the full-employment level of output,what can we say about the state of the economy at Y<sub>1</sub>? A) It is in recession. B) It is in expansion. C) It is in equilibrium,but above full employment. D) It is not in equilibrium,and output will increase. E) It is not in equilibrium,and output will fall.
-Refer to Figure 11-8.If YFE represents the full-employment level of output,what can we say about the state of the economy at Y1?


A) It is in recession.
B) It is in expansion.
C) It is in equilibrium,but above full employment.
D) It is not in equilibrium,and output will increase.
E) It is not in equilibrium,and output will fall.

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