Question : Which of the following statement are true?
Option 1: Both are true.
Option 2: Both are false.
Option 3: Statement 1 is true, statement 2 is false.
Option 4: Statement 1 is false, statement 2 is true.
Correct Answer: Both are false.
Solution : Frictional unemployment is related with the change of job in the dynamic economy. Induced investment is generally done by the private sector while autonomous investment is done by the government sector. Hence, Option B is correct.
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