Referring to the above diagram, which of the following is a true statement?
A. Macroeconomic policy will be needed to address rising inflation.
B. There is sufficient aggregate demand to cause inflationary pressures.
C. The equilibrium in the economy is at a level of output above full employment.
D. There is insufficient aggregate demand to reach full employment.
Answer:D
Referring to the above diagram, which of the following is a true statement?
A. Macroeconomic policy will be needed to address rising inflation. B. There is sufficient aggregate demand to cause inflationary pressures. C. The equilibrium in the economy is at a level of output above full employment. D. There is insufficient aggregate demand to reach full employment.
Explanation: Type: Multiple Choice Category: Evaluate