Use the figure below to answer the following question(s). Figure 9-2 -Figure 9-2 indicates that the output of the economy, y₁, is A)greater than the economy's long-run capacity. B)equal to the economy's long-run capacity. C)less than the economy's long-run capacity. D)not consistent will full employment of the economy's resources.

Question

Quizplus · Accepted Answer

The output y1 being equal to the economy's long-run capacity suggests that the economy is operating at its potential output, where resources are fully employed.

Use the Figure Below to Answer the Following Question(s)