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

Brief Explanations:

In macro - economics, when the economy is operating below full - employment, the short - run equilibrium (where AD and AS intersect) is to the left of the long - run aggregate supply (LRAS) curve. In Graph A, the intersection of AD and AS is to the left of the LRAS, indicating that the economy is producing less than the full - employment output level. In Graph B, the intersection is on the LRAS, meaning the economy is at full - employment. In Graph C, the intersection is to the right of the LRAS which represents an over - heated economy.

Answer:

a. Graph A