An increase in frictional unemployment will A) shift the ...

[roselinechinyere27m]

An increase in frictional unemployment will
 
  A) shift the long-run Phillips curve to the right.
  B) shift the short-run Phillips curve to the right.
  C) increase the natural rate of unemployment.
  D) All of the above are correct.
  E) None of the above is correct.

Question 2

Suppose the economy is at full employment and firms become more optimistic about the future profitability of new investment. Which of the following will happen in the short run?
 
  A) The aggregate demand curve will shift to the left.
  B) Output will decline.
  C) Unemployment will decline.
  D) Prices will decline.

[yuyiding]

Answer to Question 1

D

Answer to Question 2

C