Refer to the information provided in Figure 26.8 below to answer the question(s) that follow. Figure 26.8 -Refer to Figure 26.8. If the economy is currently at Point B producing output level Y₁ A) the economy is operating above full employment. B) input prices are likely to rise. C) aggregate supply shifts to the left and the economy ends up at Point C. D) all of the above.

Question

Quizplus · Accepted Answer

If the economy is at Point B producing output level Y1, it is likely operating above full employment, leading to increased demand for inputs and potential rises in input prices. This can cause the aggregate supply to shift left, moving the economy towards Point C.

Refer to the Information Provided in Figure 26