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(3 points) Assume that the following relationship holds for Macronesia: u - 5.3% = -0.25(Y - $1,750 million). If current GDP is 2% below potential,
(3 points) Assume that the following relationship holds for Macronesia: u - 5.3% = -0.25(Y - $1,750 million). If current GDP is 2% below potential, how much is cyclical unemployment in Macronesia? a. 3.45% b. 5.05% c. 5.30% d. 8.75% e. 14.05%
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Principles of economics
Authors: N. Gregory Mankiw
6th Edition
978-0538453059, 9781435462120, 538453052, 1435462122, 978-0538453042
