Figure 10.3.2 Refer to Figure 10.3.2, which shows the  AS - AD  model...

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Figure 10.3.2

Refer 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.

(1) is correct; (2) is incorrect.

100%

(1) and (2) are correct.

0%

(1) is correct; (2) is correct if the LAS curve shifts rightward at the same time.

0%

(2) is correct; (1) is incorrect.

0%

(1) and (2) are incorrect.

0%

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