<p> Distinguish between equilibrium and disequilibrium unemployment.</p><p>LRAS curve represents natural rate of output the economy produces when unemployment is at natural rate of potential output = equilibrium.</p><p>Shift in AS is caused by its determinants: 1. input prices 2. productivity 3. legal institutional environment</p><p>This shift can cause disequilibrium of unemployment  A-equilibrium  B-increase in unemployment  C-decrease in unemployment A shift in AD can cause disequilibrium of unemployment. Determinants that can cause AD to shift: 1. Consumption 2. Investment 3. Government spending 4. Net Exports Change in unemployment  A-equilibrium  B-decrease in unemployment  C-increase in unemployment</p>