Natural rate of unemployment is the normal rate of unemployment toward which the economy gravitates.

If economists say that a 7 percent growth in the money supply will increase aggregate demand by 7 percent, they are assuming that velocity

A. will decrease. B. is constant. C. will increase. D. is unpredictable.

In the short run, marginal cost is positive and increasing at output levels where total variable cost is ________ at a(n) ________ rate.

A. decreasing; increasing B. increasing; increasing C. decreasing; decreasing D. increasing; decreasing