Consider the model of Section 11.4. Suppose the economy is initially in equilibrium, and that y then

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Consider the model of Section 11.4.

Suppose the economy is initially in equilibrium, and that y then falls permanently. Suppose, however, that entry and exit are ruled out; thus the total number of jobs, F + V, remains constant.

How do unemployment and vacancies behave over time in response to the fall in y?

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Advanced Macroeconomics

ISBN: 9781260231250

5th Edition

Authors: David Romer

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Question Posted: Nov 14, 2024 07:01 AM

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Consider the model of Section 11.4. Suppose the economy is initially in equilibrium, and that y then

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Advanced Macroeconomics

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