Use the Figure Below to Answer the Following Questions

question 118

Multiple Choice

Use the figure below to answer the following questions.

Figure 26.3.1
-Refer to Figure 26.3.1. Consider statements (1) and (2) and select the correct answer. (1) The actual unemployment rate exceeds the natural unemployment rate.
(2) Short-run aggregate supply will automatically shift leftward as the economy adjusts to long-run equilibrium.

• A)(1)is true; (2)is false.
• B)(2)is true; (1)is false.
• C)(1)and (2)are false.
• D)(1)and (2)are true.
• E)(1)is true; (2)is true if the money wage rate falls.

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Definitions:

Market Value

The existing cost for buying or selling an asset or service in the open market.

Stock Split

A corporate action where a company divides its existing shares into multiple shares to increase liquidity without changing the shareholders' equity.

Par Value

The nominal or face value of a stock or bond as assigned by the issuing company, which may bear no relation to its market value.

Preferred Stock Dividend

Cash distributions that are paid to holders of a company's preferred shares at a specified rate and before dividends are paid to common stockholders.