8)The natural rate of unemployment is _______. A)the unemployment rate that exists when output is assumed to be at its full employment level . B)always zero. C)the unemployment rate that exists when inflation is zero. D)All of the above. 9)Which of the following will shift the LRAS curve to the right? 10)When the economy goes into a recession, there's an increase in _______. 11)The slope of the AS curve becomes steeper _______. 12)A negative demand shock will not affect the output level if _______. A)it is a Keynesian AS curve. B)the price level is fixed. C)wages and prices are completely flexible. D)wages and prices are completely rigid.
BSP2001 Macro & International Economics Sem 1 2014/2015 3 13)Using the ASAD model, changes to AD cannot affect the output level in the _______. 14)According to the neutrality of money, changes in nominal money supply have no long run effect on _______. 15)A negative supply shock will cause the AS curve to shift _______ and real wages to _______ in the medium run.
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