Use the Figure Below to Answer the Following Questions

question 22

Multiple Choice

Use the figure below to answer the following questions.

Figure 26.3.2
-Refer to Figure 26.3.2. Consider statements (1) and (2) and select the correct answer. (1) The actual unemployment rate exceeds the natural unemployment rate in the short run.
(2) SAS automatically shifts rightward 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 false; (2)is true if the LAS curve shifts rightward at the same time.

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