In the above figure, which point represents a situation with significant shortages of labor, capital, and other resources?

The unemployment rate equals the number of persons

a. unemployed divided by the number employed. b. unemployed divided by the number in the labor force. c. unemployed divided by the population age 16 and over. d. not working divided by the population age 16 and over.

Friedman and Phelps argued

a. that in the long run, monetary growth did not influence those factors that determine the economy's unemployment rate. b. that the Phillips curve could be exploited in the long run by using monetary, but not fiscal policy. c. that the short-run Phillips curve was very steep, but not vertical. d. that there was neither a short-run nor long-run tradeoff between inflation and unemployment.