Figure 23-2
-Refer to Figure 23-2. Suppose that the level of GDP associated with point K is potential GDP. If the U.S. economy is currently at point N, then
A) firms are operating below capacity.
B) the economy is at full employment.
C) the economy is in an expansion.
D) the level of unemployment is above the natural rate.

Question

Figure 23-2 
-Refer to Figure 23-2. Suppose that the level of GDP associated with point K is potential GDP. If the U.S. economy is currently at point N, then
A) firms are operating below capacity. 
B) the economy is at full employment. 
C) the economy is in an expansion. 
D) the level of unemployment is above the natural rate.

Quizplus · Accepted Answer

The Answer of Figure 23-2 
-Refer to Figure 23-2. Suppose that the level of GDP associated with point K is potential GDP. If the U.S. economy is currently at point N, then
A) firms are operating below capacity. 
B) the economy is at full employment. 
C) the economy is in an expansion. 
D) the level of unemployment is above the natural rate.

Figure 23-2 -Refer to Figure 23-2. Suppose That the Level of GDP