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Author Question: According to the AS-AD model, when real GDP is less than potential GDP, the unemployment rate is ... (Read 47 times)

dbose

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on: Jun 29, 2018
According to the AS-AD model, when real GDP is less than potential GDP, the unemployment rate is definitely
 
  A) equal to the natural unemployment rate.
  B) rising.
  C) falling.
  D) greater than the natural unemployment rate.
  E) less than the natural unemployment rate.

Question 2

If the economy is on its short-run Phillips curve at the natural unemployment rate, then in the AS-AD model, real GDP is definitely
 
  A) decreasing.
  B) greater than potential GDP.
  C) less than potential GDP.
  D) increasing.
  E) equal to potential GDP.


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taylorsonier

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Reply #1 on: Jun 29, 2018
Answer to Question 1

D

Answer to Question 2

E


dbose

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Reply 2 on: Jun 29, 2018
Great answer, keep it coming :)

Dinolord

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Reply 3 on: Yesterday
:D TYSM

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