Question

Which of the following statements is/are correct regarding unemployment in the Keynesian and the AD-AS models?

a) In the production function, all the inputs are assumed to be fixed
b) The slope of the production function increases as the level of unemployment decreases
c) An increase in the real production always implies that unemployment rate will decline

1) b
2) a
3) b and c
4) a and b
5) Non of the above statements

Answer 1

4) a and b