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Question 53

Multiple Choice

-Refer to the graph above to answer this question.Which of the following statements is not true if the economy is at point A? A) Money wages will eventually be forced down. B) Firms will find it difficult to hire labour and people will find it easy to find jobs. C) A recessionary gap exists. D) Unemployment is above its natural rate. E) An increase in aggregate supply will move the economy towards full employment.
-Refer to the graph above to answer this question.Which of the following statements is not true if the economy is at point A?


A) Money wages will eventually be forced down.
B) Firms will find it difficult to hire labour and people will find it easy to find jobs.
C) A recessionary gap exists.
D) Unemployment is above its natural rate.
E) An increase in aggregate supply will move the economy towards full employment.

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