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QUESTION 2 Which of the following applies to the diagram below? AE AE=Y AE=C+HG+NX 500 400 A 200 45 degree Y potential Y, real output

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QUESTION 2 Which of the following applies to the diagram below? AE AE=Y AE=C+HG+NX 500 400 A 200 45 degree Y potential Y, real output O A. If the economy were to produce the potential output level, the AE would be greater than the potential output lev O B. If the economy were to produce the potential output, there would be an unexpected increase in inventory. O C. If the economy were to produce the potential output level, firms are likely to cut down on production O D. A,B&C O E. None of the above. Click Save and Submit to save and submit. Click Save All Answers to save all answers. MAY 19 DI F3 F4 F5 F6 F7 F8 F9 # % 4 5 O OO

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