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What happens to the aggregate demand curve if better economic conditions are forecast
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- When an economy is at its natural rate of unemployment, which of the following will be true?
- The demand for moneyA.is positively related to the opportunity cost of holding money.B.is a downward sloping function of the interest rate.C.is an upward sloping function of the interest rate.D.None of the above.
- Consider the effect of each of the following on the unemployment rate:a. The minimum wage lawA.increases cyclical unemployment in the economy.B.has a significant effect on the unemployment rate since a large part of the labor force earns the minimum wage.C.has only a small effect on the unemployment rate since only a small part of the labor force earns the minimum wage.D.increases the unemployment rate among highly skilled workers.