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1. Explain why when actual inflation is lower than expected inflation, lenders are better off than borrowers? 2. Describe the relationship between productivity in an

1. Explain why when actual inflation is lower than expected inflation, lenders are better off than borrowers?

2. Describe the relationship between productivity in an economy and inflation?

3. Explain why college students and retired people are not included in the calculation of the unemployment rate?

4. How would you describe the state of the economy if the output gap is zero?

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