Structural unemployment results in a ________ of labor which should theoretically be reduced by a(n) ________ in the wage rate

Figure 10-17

With the passage of time, which of the following will tend to direct this economy in toward its long-run sustainable rate of output?
a.
lower interest rates that will stimulate AD and lower resource prices that will increase SRAS
b.
higher interest rates that will reduce aggregate demand and higher resource prices that will reduce SRAS
c.
lower interest rates and higher resource prices, both of which will stimulate aggregate demand
d.
higher interest rates that will reduce SRAS and lower resource prices that will stimulate aggregate demand

The equation representing the investment schedule for the economy is:

Answer the question on the basis of the following data for a private
closed economy. The letters Y, C, S, and I are used to represent real GDP, consumption, saving, and investment respectively.

A.  I = .3Y.
B.  I = 80 - .3Y.
C.  I = 30 + .1Y.
D.  I = I 0 = 30.