Hi, just stuck on a few of these questions. Thanks!

Q5.

If there was reduced unemployment, what would happen to the AD-AS model?

• The AD curve would: (a. shift right b. shift left c. remain unchanged)
• The SRAS curve would: (a. shift right b. shift left c. remain unchanged)

As a result,

• the price level would: (a. increase b. decrease c. remain unchanged)
• and GDP would: (a. increase b. decrease c. remain unchanged)

In the short run, the economy would operate:

• a. above b. below c. (equal to the natural rate of unemployment)
• a. above b. below c. (equal to the natural rate of output)

Q15.

The quote "the central bank has realised unemployment needs to be much lower to stimulate material wages growth" implies that:

a. Natural rate of unemployment needs to be higher

b. Natural rate of output needs to be lower

c. The economy would operate above the natural rate of output

d. Workers have less bargaining power with firms

Q16.

The quote "The globalisation of labour and product markets, robots replacing workers and decline of trade union power has reduced the bargaining power of workers in wage negotiations." implies that:

a. Nominal wages would fall

b. Prices would rise

c. The labour market would tighten

d. All of the options