Refer to the following figure to answer the next four questions.

-Which point in the corresponding figure shows that productive resources are not fully employed?
A) point A
B) point B
C) point C
D) point D
E) point E

Question

Refer to the following figure to answer the next four questions.
 
-Which point in the corresponding figure shows that productive resources are not fully employed?
A) point A 
B) point B 
C) point C 
D) point D 
E) point E

Quizplus · Accepted Answer

Point A shows that the economy is producing below its potential output, indicating that productive resources are not fully employed.

Answer: C
 Point C shows an increase in the price level, which can lead to inflation. This can occur if there is an increase in aggregate demand without a corresponding increase in aggregate supply.

Answer: D
 Point D shows a decrease in both the price level and real GDP, which can indicate a recession or economic downturn. This can occur if there is a decrease in aggregate demand, leading to a decrease in production and prices.

Answer: E
 Point E shows an increase in real GDP and a decrease in the price level, which indicates economic growth with low inflation. This can occur if there is an increase in aggregate supply or an increase in aggregate demand matched by an increase in production.

Refer to the Following Figure to Answer the Next Four