Real aggregate expenditure, ME Y = ME (trillions of AE dollars) AF, Real GDP, Y (trillions of dollars) 5. Refer to the above diagram. Suppose that the level of GDP associated with point K is potential GDP. If the U.S. economy is currently at point N, A) the economy is at full employment. B) the economy is in an expansion. C) firms are operating below capacity. D) the level of unemployment is above the natural rate