Refer to the information provided in Figure 12.1 below to answer the questions that follow.
Figure 12.1
-Refer to Figure 12.1.At aggregate output levels below $500 billion,this economy is most likely experiencing
A)rapid increases in the growth rate of the money supply.
B)a boom.
C)excess demand.
D)excess capacity.

Question

Refer to the information provided in Figure 12.1 below to answer the questions that follow.
  Figure 12.1
-Refer to Figure 12.1.At aggregate output levels below $500 billion,this economy is most likely experiencing
A)rapid increases in the growth rate of the money supply. 
B)a boom. 
C)excess demand. 
D)excess capacity.

Quizplus · Accepted Answer

At aggregate output levels below $500 billion, the economy is operating at less than full capacity, indicating excess capacity.

Refer to the Information Provided in Figure 12