Question #4: TRUE, FALSE or UNCERTAIN Determine if the following statements are TRUE, FALSE, or UNCERTAIN. You must justify your answer either graphically, mathematically or in words (a) According to Okun's Law if the unemployment rate falls by 1%, then real GDP will increase by 5%. (b) If there is a positive supply shock, the Fed should decrease the money supply in order to stabilize the economy. (c) Assume that an economy is initially at its long-11m equilibrium {SRAS=AD=LRAS}. If there is a shock that causes the aggregate demand curve to shift left, it would result in lower prices but no change in output in the long-rim. n a I In- tn '1