Refer to the diagram. The general agreement of most economists is that the U.S. economy today is
A) at b.
B) at some level below b.
C) at some level above b.
D) at d.

Question

Refer to the diagram. The general agreement of most economists is that the U.S. economy today is
A) at b. 
B) at some level below b. 
C) at some level above b. 
D) at d.

Quizplus · Accepted Answer

Based on the diagram, point b represents potential output, which is the maximum amount of goods and services that can be produced with existing resources and technology without causing inflation. Most economists believe that the economy is currently operating below potential, which would indicate that the answer is B.

Refer to the Diagram