True or False?
The statement is false. A decline in nominal aggregate demand is one explanation of what Joe observes. Another explanation is that the unexpectedly high waiting time is simply random deviation of observed waiting time from its expected value. For example, there is a 50 percent chance that any given worker will have to wait longer than the expected or average time required to find a job and a 50 percent change the worker will have to wait a smaller length of time than expected. And there is a very small probability that the worker will have to wait a very long time to find employment even though nominal aggregate demand has not changed.