Refer to the information provided in Figure 11.8 below to answer the questions that follow. Figure 11.8 -Refer to Figure 11.8. If the economy is currently at Point B producing output level Y₁ A) the economy is operating above full employment. B) input prices are likely to rise. C) aggregate supply shifts to the left and the economy ends up at Point C. D) all of the above

Question

Quizplus · Accepted Answer

At Point B, the economy is operating above its full employment level, which typically leads to an increase in input prices due to higher demand for inputs. As input prices rise, the aggregate supply curve shifts to the left, moving the economy towards Point C.

Refer to the Information Provided in Figure 11