If the economy is on the IS curve, but is to the left of the LM curve, aggregate output will ________ and the interest rate will ________

Refer to Figure 7-2. The efficient equilibrium price is

A) $60. B) $50. C) $40. D) < $40.

Unemployment that results from business recessions that occur when aggregate demand is insufficient to create full employment is

A) frictional unemployment. B) structural unemployment. C) cyclical unemployment. D) seasonal unemployment.