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Which statement is correct for unemployment and its presentation on the AD/AS diagram? Select the best answer. Answer Keypad Keyboard Shortcuts Although the AD/AS diagram
Which statement is correct for unemployment and its presentation on the AD/AS diagram? Select the best answer. Answer Keypad Keyboard Shortcuts Although the AD/AS diagram shows the factors that determine cyclical unemployment, it does not do the same for the factors that determine the natural rate of unemployment. Potential GDP is not affected by any unemployment rate as far as it shows the output that corresponds to full employment. Relatively high cyclical unemployment arises when the output is substantially to the left of potential GDP on the AD/AS diagram
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