Suppose that an economy is initially in equilibrium at E1 in the gure to the right. In this case, the unemployment rate exceeds V the natural rate of unemployment. Cyclical unemployment is positive Suppose that activist policy is used. This would cause the aggregate demand Move the cursor to the new equilibrium point. Now, the unemployment rate the natural rate of unemployment. V curve to shift to the right . Price Level 125 124 123 122 121 120 11 118 117 116 115w ,_, a 91011121314151617181920 Real GDP per Year ($ trillions)