If policy makers think the natural rate of unemployment is lower than it really is, then their policies designed to move the economy to the estimated natural rate, if continued over the long run, will:a. shift the long-run aggregate supply curve to the right.b. cause continuing inflation.c. shift the supply curve of labor to the right.d. lead to a lower price level.e. keep the economy below its potential GDP level.

If policy makers think the natural rate of unemployment is lower than it really is, then their policies designed to move the economy to the estimated natural rate, if continued over the long run, will: O a. shift the long-run aggregate supply curve to the right. O b. cause continuing inflation. O c. shift the supply curve of labor to the right. O d. lead to a lower price level. O e. keep the economy below its potential GDP level.

If policy makers think the natural rate of unemployment is lower than it really is, then their policies designed to move the economy to the estimated natural rate, if continued over the long run, will: O a. shift the long-run aggregate supply curve to the right. O b. cause continuing inflation. O c. shift the supply curve of labor to the right. O d. lead to a lower price level. O e. keep the economy below its potential GDP level.

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter10: Aggregate Supply

Section: Chapter Questions

Problem 1.1P

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