Giving in each case an example of what could have caused it, explain how unemployment can be
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Giving in each case an example of what could have caused it, explain how unemployment can be above equilibrium due to the following. Use diagrams, such as those in Fig. 2.15, to show the inflationary implications of each shock (assume there is no stabilizing policy maker).
(a) Aggregate demand being too low
(b) A wage-setting shock
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Related Book For
Macroeconomics Institutions Instability And The Financial System
ISBN: 9780199655793
1st Edition
Authors: Wendy Carlin, David Soskice
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