The figure below shows the relationship between an economy's potential output, price level, and real GDP. According to those who favor an active approach to policy, the economy will end up at _____when it attains the potential output level.

A) point A
B) point B
C) point C
D) a point between A and B
E) a point between A and C

Question

The figure below shows the relationship between an economy's potential output, price level, and real GDP. According to those who favor an active approach to policy, the economy will end up at _____when it attains the potential output level.

A) point A 
B) point B 
C) point C 
D) a point between A and B 
E) a point between A and C

Quizplus · Accepted Answer

The Answer of The figure below shows the relationship between an economy's potential output, price level, and real GDP. According to those who favor an active approach to policy, the economy will end up at _____when it attains the potential output level.

A) point A 
B) point B 
C) point C 
D) a point between A and B 
E) a point between A and C

The Figure Below Shows the Relationship Between an Economy's Potential