1 - The economy will be producing along the Long Run Aggregate Supply when ________.

• a.)
• there is an underutilization of resources
• b.)
• all resources are being used to their optimal level
• c.)
• prices will affect output by producers
• d.)
• there is zero unemployment

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2 - When the economy is operating beyond the LRAS curve, __________.

• a.)
• unemployment can be below the natural rate
• b.)
• the economy will be operating at 0% unemployment
• c.)
• this economy will experience cyclical unemployment
• d.)
• the labor force has decreased due to increased wages