Consider Figure 17-2. Explain whether the cyclical unemployment rate is positive, zero, or negative at point E2,

Question:

Consider Figure 17-2. Explain whether the cyclical unemployment rate is positive, zero, or negative at point E2, after the shift in the aggregate demand curve from AD1 to AD2. In addition, explain whether the cyclical unemployment rate is positive, zero, or negative at point E3, following the shift in the short-run aggregate supply curve from SRAS1 to SRAS2.