Multiple Choice
Refer to the following figure when answering the following questions.
Figure 9.1: Output versus Time
-Considering Figure 9.1:
A) area a is where current output is less than potential output, and area b is where current output is greater than potential output.
B) area a is where current output is greater than potential output, and area b is where current output is less than potential output.
C) point c is where economic fluctuations are zero, and at point b, the economy is in a boom.
D) at point c, current output equals the short-term fluctuations.
E) area a is where current output is greater than potential output, and at point c, the economy is in a boom.
Correct Answer:

Verified
Correct Answer:
Verified
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