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Which is true if a nation is currently experiencing full employment? The rate of cyclical unemployment is 0%. Every person who wants a job is able to find a job. Only structural unemployment exists. 。5% of the population is without a job.Changes to both the money supply and the velocity of money induce changes in aggregate demand. However, the long-run impacts of changes in these variables are different. How are the effects of an increase in the velocity of money and the effects of an increase in the money supply different? Changes in the money supply can lead to permanent changes in aggregate demand, but changes in the velocity of O Ceteris paribus, a change in the velocity of money, has a more significant impact on aggregate demand than ona O Changes in the money supply are necessarily temporary, but changes in the velocity of money are O Both can induce inflation in the short run, but only an increase in the velocity of money will lead to a long-term O In the short run, changes in the velocity of money impact only the real growth rate, but changes in the money supply O In the short run, changes in the money supply impact only the real growth rate, but changes in the velocity of money money tend to have temporary changes in aggregate demand. change in the money supply necessarily permanent increase in inflation impact both the price level and the growth mate impact both the price level and the growth rate.

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Ans. 1) The rate of Cyclical unemployment is 0%

2) Changes in money supply can lead to permanent Changes in Aggregate Demand , but changes in velocity of money tend to have temporary changes in Aggregate Demand.

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