Figure 33-1 -Refer to Figure 33-1. The natural level of output occurs at A)Y₁. B)Y₂. C)Y₃. D)both Y₁ and Y₃.

Question

Quizplus · Accepted Answer

The natural level of output is the level of output at which the economy's resources are fully employed. Without seeing Figure 33-1, the correct answer typically refers to the point where aggregate demand intersects long-term aggregate supply at full employment, which is often denoted in a way similar to option B.

Figure 33-1 -Refer to Figure 33-1. the Natural Level of Output Occurs