00:01
Hello, so we have a question, which of the following is true? we have three statements here.
00:05
The aggregate supply curve is upward sloping when prices do not adjust.
00:11
The second statement, when cyclical unemployment is zero, the actual unemployment rate is equal to its natural rate.
00:22
And the third statement, in the short run, an output gap occurs when potential gdp is not equal to actual gdp.
00:30
So let me just write out those sentences.
00:33
So now that we've written out these statements, we can look over them.
00:36
The aggregate supply curve is upward sloping when prices do not adjust.
00:40
This statement is incorrect.
00:42
The aggregate supply curve is typically upward sloping, but this is due to factors like increased costs of production as output increases, not because prices do not adjust...