$1.$ Give an example to illustrate how the economy can operate below the natural unemployment rate. $\mathrm{}\mathrm{}$$$ 

 

 

 $2.$ If the economy is self$-$regulating, how do changes in aggregate demand affect the economy in the long run? $\mathrm{}\mathrm{}$$$ 

 

 

 $3.$ What happens in the economy if total production $($TP$)$ is greater than total expenditures $($TE$)?\mathrm{}\mathrm{}$$$ 

 

 

 $4.$ What is the relationship between a change in Real GDP $($assuming a change in autonomous spending$)$ and $($the size of$)$ the MPC$.\mathrm{}\mathrm{}$$$ 

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1 Example of Operating Below the Natural Unemployment Rate During an economic recession there is a decrease in overall demand for goods and services l... View the full answer