17 which of the graphs below shows the economy operating above full employment? a. graph a b. graph b c…

Brief Explanations:

In the long - run aggregate supply (LRAS) model, the economy is operating above full - employment when the short - run equilibrium output is greater than the full - employment output. The full - employment output is associated with the vertical LRAS curve. In Graph C, the intersection of the aggregate demand (AD) and aggregate supply (AS) curves is to the right of the LRAS curve, indicating that the economy is producing at a level above full - employment output.

Answer:

c. Graph C