-Refer to Figure 15.1. At point b
A) GDP is above potential output.
B) GDP is below potential output.
C) unemployment is above the natural rate.
D) the economy is in long-run equilibrium.

Question

-Refer to Figure 15.1. At point b
A) GDP is above potential output. 
B) GDP is below potential output. 
C) unemployment is above the natural rate. 
D) the economy is in long-run equilibrium.

Quizplus · Accepted Answer

At point b, GDP is above potential output, indicating an economy operating beyond its sustainable capacity, often leading to inflationary pressures.

-Refer to Figure 15.1. at Point B