The natural rate of unemployment will not change following an increase in ________ unemployment.
A) frictional B) cyclical C) structural D) all of the above
Question 2
A decrease in aggregate demand in the economy will have what effect on macroeconomic equilibrium in the long run?
A) The price level will fall, and the level of GDP will be unaffected.
B) The price level will rise, and the level of GDP will be unaffected.
C) The price level will rise, and the level of GDP will fall.
D) The price level will fall, and the level of GDP will fall.
Effects of growth rate on development.
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