4. For the economy described in Problem 3: (LO3) a. Construct a table like Table 13.1 to...
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4. For the economy described in Problem 3: (LO3) a. Construct a table like Table 13.1 to find short-run equilibrium output. Consider possible values for short-run equilibrium output ranging from 8,200 to 9,000. b. Show the determination of short-run equilibrium output for this economy using the Keynesian-cross diagram. c. What is the output gap for this economy? If the natural rate of unemployment is 4 percent, what is the actual unemployment rate for this economy? (Hint: Use Okun’s law.)
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Principles Of Macroeconomics
ISBN: 9781264250356
8th Edition
Authors: Robert Frank, Ben Bernanke, Kate Antonovics, Ori Heffetz
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