In the short run, a restrictive fiscal policy will cause aggregate demand, output, and the price level to change in which of the following ways?

Suppose that the initial supply of loanable funds curve is SLF1. In the figure above, an increase in the real interest rate leads to

i. a shift in the supply of loanable funds curve from SLF1 to SLF2. ii. a shift in the supply of loanable funds curve from SLF1 to SLF3. iii. a movement along the supply of loanable funds curve SLF1. iv. no change whatever. A) i and iii B) iv only C) ii only D) i only E) iii only

At the peak of a business cycle, the

A) cyclical unemployment rate is positive. B) unemployment rate is above the natural unemployment rate. C) frictional unemployment rate is zero. D) unemployment rate is below the natural unemployment rate. E) natural unemployment rate is negative.