What types of policy are most likely to affect the natural rate of unemployment? a) Active demand management policies to contain inflation and unemployment. b) Policies for the management of trade. c) Ensuring that firms can hire workers easily in the labour market. d) Supporting industries seeking to increase exports to other countries. 2. In the circular flow of income model if injections are greater than withdrawals, a) The real money supply will tend to increase. b) National income will tend to increase. c) Unemployment and production will tend to fall. d) The general level of prices will tend to fall.

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