Figure 23-2 -Refer to Figure 23-2.Suppose That the Level of GDP Associated

Multiple Choice

Figure 23-2
-Refer to Figure 23-2.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.