(a) Determine whether each of the following statements is True, False or Uncertain. Give a brief explanation for your choice (brief explanation accounts for 2 out of the 3 marks).

1.

ii.

ll1.

lV.

When the economy goes into a recession, there's an increase in frictional

unemployment. (3 marks)

According to Okun's law, if full-employment output is Gh¢5000 billion, then each

percentage point of unemployment sustained for one year reduces output by Gh¢50 billion. (3 marks)

If the number of employed workers in a country decreases, the unemployment rate in the country will increase. (3 marks)

An·increase in the duration of unemployment should be linked to a decrease in flows in and out of unemployment if one is to keep unemp