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Answer to Question #81174 in Macroeconomics for JOHN
Question #81174
. 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 employment 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] none of the above statements
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 employment 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] none of the above statements
Expert's answer
[3] b and c
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