If Aggregate Output Is Below the Natural Rate Level,nonactivists of Policies

question 35

Multiple Choice

If aggregate output is below the natural rate level,nonactivists of policies would recommend that the government

• A)do nothing.
• B)try to eliminate the high unemployment by attempting to shift the aggregate supply curve to the right.
• C)try to eliminate the high unemployment by attempting to shift the aggregate demand curve to the right.
• D)try to eliminate the high unemployment by attempting to shift the aggregate demand curve to the left.

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Definitions:

Automated Equipment

Machinery that operates with minimal human intervention, often using computer control systems to perform tasks more efficiently.

Attractive Investment

An investment proposition that is deemed desirable due to its potential for significant returns or other beneficial outcomes.

Discount Rate

The rate of interest applied to calculate the present value of future cash flows.

Net Present Value

A method used to evaluate the profitability of an investment by calculating the difference between the present value of cash inflows and outflows over a period of time.