Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD1 the result in the long run would be:

The unemployment rate is the number of people unemployed divided by the

A) number of people employed, then multiplied by 100. B) working-age population, then multiplied by 100. C) labor force, then multiplied by 100. D) labor force participation rate, then multiplied by the population. E) population, then multiplied by 100.

If the price level in the current year is much higher than the expected price level, _____

a. firms will increase production beyond the economy's potential level b. the unemployment rate will increase c. firms will decrease production below the economy's potential level d. the short-run aggregate supply curve will become steeper e. the unemployment rate will fall to zero