Exhibit 16-1 -According to Those Who Favor an Active Approach to Policy,where

Multiple Choice

Exhibit 16-1
-According to those who favor an active approach to policy,where will the economy in Exhibit 16-1 end up when it achieves its potential output?

A) point A
B) point B
C) point C
D) either point B or C
E) cannot tell from the information provided