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:

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