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3. State Say's law and then explain why classical economists believed that there could never be a general surplus of goods and services in
3. State Say's law and then explain why classical economists believed that there could never be a general surplus of goods and services in the economy. [2+1=3 pts] 4. Describe the relationship between Real GDP and Natural Real GDP and between the unemployment rate and the natural unemployment rate in the three states of an economy. [0.75x6=4.5 pts] 5. Describe how a self-regulating economy moves out of a recessionary gap. What is the implication of believing an economy is self-regulating? [2+1=3 pts]
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