Analyze whether the following statements based on the 3 components in deriving the AS curve are true or false. Write TRUE is the statement is correct, and FALSE if it is incorrect. Provide an explanation why the statement is true/false. Statement 4. When the economy managed to sustain 2 percentage points of growth in real GDP above the trend rate in a year, we can expect the unemployment rate to decline by 4 percentage points. Statement 5. Higher labor cost per output causes the price to rise.

Analyze whether the following statements based on the 3 components in deriving the AS curve are true or false. Write TRUE is the statement is correct, and FALSE if it is incorrect. Provide an explanation why the statement is true/false. Statement 4. When the economy managed to sustain 2 percentage points of growth in real GDP above the trend rate in a year, we can expect the unemployment rate to decline by 4 percentage points. Statement 5. Higher labor cost per output causes the price to rise.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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