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Question 83 (Mandatory) (1 point) Which term refers to the rate of unemployment that occurs when the economy is producing itsQuestion 84 (Mandatory) (1 point) Exhibit 14-3 Price level Potential output LRAS SRAS AD Real GDPRefer to the graph in the exhibit. In this situation, how could the Bank of Canada return the economy to potential output? a)

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Answer #1

1):-Natural rate of Unemployment is defined as a unemployment that occurs when the economy is producing its potential or full employment level of output (real GDP), and is equal to the sum of structural, frictional and seasonal unemployment

2) :- c is right option

Money Supply is defined as the liquid assets held by banks/individuals Includes all money in both circulation AND banks

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