How does AD/SRAS affect the Unemployment Rate?

Discussion in 'Economics' started by BTB, Nov 27, 2009.

  1. BTB

    BTB

    On an AD/SRAS graph, how can you tell how shifts in either the AD or SRAS affect the Unemployment Rate?

    Ex. How would a fall in the interest rate (which would shift the AD curve out to the right) affect the Unemployment Rate?

    Thanks for the help!