TRUE OR FALSE a. When potential real GDP is equal to actual real GDP, there is...

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Economics

TRUE OR FALSE
a. When potential real GDP is equal to actual real GDP, there is nounemployment.
b. A significant increase in wages will shift aggregate supplycurve to the right in the short run.
c. When the government decided to reduce their spending, then theaggregate supply curve will decrease or shift to the left in theshort run.
d. If the central Bank wants to expand aggregate demand, it canincrease the money supply, which would increase the interestrate.
e. To find spending multiplier, we have to calculate one divided bymarginal propensity to consume.
Explain why true and why false!

Answer & Explanation Solved by verified expert

3.7 Ratings (692 Votes)

Answer 1 The answer is False When actual real GDP and potential real GDP are same then the natural unemployment occur in the economy Natural unemployment is the sum of frictional unemployment and structural unemployment So See Answer

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