Read the statement below carefully, and decide whether it is true or false. And then EXPLAIN...

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Read the statement below carefully, and decide whether it is true or false. And then EXPLAIN...

Read the statement below carefully, and decide whether it is true or false. And then EXPLAIN your answer (whether “true “ or “false”).

The aggregate supply curve is vertical at the level of real GDP that corresponds to the natural rate of unemployment.

business economics

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Answer 1

Answer #1

"True"

Aggregate supply curve will be a straight line where all the resources in the economy are employed and the output cannot be increased much, the natural rate of unemployment occurs when all the labor force in the economy are fully employed. So, they both are at the same level of output.

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Answer 2

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