Figure 10.3.2
Refer to Figure 10.3.2, which shows the AS - AD model...
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Figure 10.3.2Refer to Figure 10.3.2, which shows the AS-AD model, in which an economy is in short-run macroeconomic equilibrium. Which of the following statements (1) and (2) is correct and which is incorrect?
(1)
The actual unemployment rate exceeds the natural unemployment rate in the short run.
(2)
As the economy adjusts to long-run equilibrium, the SAS curve automatically shifts rightward.