1. The natural rate of unemployment
a. can change in quantity through fiscal and monetary policy.
b. can change in quantity but by some other means than fiscal and monetary policy.
c. can change in quantity with a shift of the aggregate demand curve
d. can never change in quantity.
2. Money demand occurs because people ____________ and will pay a price for it known as the interest rate. This ______ true for those who hold high sums of money in a checking and savings account.
a. have insufficient income for many of their needs // is also
b. have insufficient income for many of their needs // is not
c. need to have a certain amount of liquidity since non-liquid assets cannot be easily traded // is also
d. need to have a certain amount of liquidity since non-liquid assets cannot be easily traded // is not