-Refer to Figure 11-9

Multiple Choice

-Refer to Figure 11-9.If Y_FE represents the full employment level of output,the situation depicted at Y₁ in the graph is

A) impossible to achieve because employment would exceed full employment
B) one in which we would expect businesses to cut production
C) one in which we would expect businesses to increase production
D) identified as an expansion
E) identified as a recession