The graph shown displays various economic outcomes. Assuming the economy is currently at equilibrium A, we can conclude:
A) the economy is in a recession.
B) the economy is producing less than its potential level of output.
C) there must be unemployment of resources.
D) All of these are true.

Question

The graph shown displays various economic outcomes.  Assuming the economy is currently at equilibrium A, we can conclude:
A) the economy is in a recession. 
B) the economy is producing less than its potential level of output. 
C) there must be unemployment of resources. 
D) All of these are true.

Quizplus · Accepted Answer

The Answer of The graph shown displays various economic outcomes.  Assuming the economy is currently at equilibrium A, we can conclude:
A) the economy is in a recession. 
B) the economy is producing less than its potential level of output. 
C) there must be unemployment of resources. 
D) All of these are true.

The Graph Shown Displays Various Economic Outcomes