Use the following to answer questions . Exhibit: Using the Aggregate Demand/Aggregate Supply Model 2 -(Exhibit: Using the Aggregate Demand/Aggregate Supply Model 2) At output level Y_K, A) potential output is less than actual output. B) there is a surplus of real GDP. C) the unemployment rate exceeds the natural rate of unemployment. D) over time aggregate demand will rise to restore long-run equilibrium.

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At output level Y_K, the economy is producing less than its potential output, indicating that the unemployment rate is higher than the natural rate of unemployment.

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