If the natural rate of unemployment declines A labor is mor

If the natural rate of unemployment declines ____. A. labor is more heavily utilized b. potential output increases c. the long run aggregate supply curve shifts to the right d. all of the above e. none of the above

Solution

Ans : D ) All of the above

Explanation :

If the natural rate of unemplyment declines then there will be more employment of labor force in the economy. It leads to more utilisation of labor and increase in potential output . As a result the long run aggregate supply curve shifts to the right .