3. Which of the following are consistent with the observed relationship between growth in real GDP and

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3. Which of the following are consistent with the observed relationship between growth in real GDP and changes in the unemployment rate? Which are not?

a. A rise in the unemployment rate accompanies a fall in real GDP.

b. An exceptionally strong business recovery is associated with a greater percentage of the labor force being employed.

c. Negative real GDP growth is associated with a fall in the unemployment rate.

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Macroeconomics In Modules

ISBN: 978-1464139055

3rd Edition

Authors: Paul Krugman ,Robin Wells

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