Reduction in the levels of structural unemployment have the effect of   A. Reducing the level of aggregate demand.   B. Increasing the level of frictional unemployment​ (since if structural unemployment falls frictional unemployment must rise to keep the natural rate ​unchanged)   C. Reducing the​ long-run aggregate supply but increasing​ short-run aggregate supply   D. Increasing the​ long-run aggregate supply

ECON MACRO
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ISBN:9781337000529
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Chapter10: Aggregate Supply
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Reduction in the levels of structural unemployment have the effect of
 
A.
Reducing the level of aggregate demand.
 
B.
Increasing the level of frictional unemployment​ (since if structural unemployment falls frictional unemployment must rise to keep the natural rate ​unchanged)
 
C.
Reducing the​ long-run aggregate supply but increasing​ short-run aggregate supply
 
D.
Increasing the​ long-run aggregate supply
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