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Analyze how each of the following would affect the current equilibrium wage rate, the full-employment level of employment, and the full-employment level of output. Illustrate
Analyze how each of the following would affect the current equilibrium wage rate, the full-employment level of employment, and the full-employment level of output. Illustrate each answer with appropriate graphs.
(a)A nuclear accident destroys a significant portion of the economy's capital stock.
(b) A tremendous boom occurs in the stock market, increasing people's wealth by $110 billion overnight.
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