Refer to the information provided in Figure 26.8 below to answer the question(s) that follow.
Figure 26.8Refer to Figure 26.8. If the economy is currently at Point D producing output level Y2, which of the following is not true?
A. The economy is operating below full employment.
B. Aggregate supply shifts to the right and the economy ends up at Point E.
C. The economy is operating above full employment.
D. Input prices are likely to fall.
Answer: C
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