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Assume that the Minister of Finance proposes a number of structural changes that affect the functioning of the labor market so that natural unemployment is

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Assume that the Minister of Finance proposes a number of structural changes that affect the functioning of the labor market so that natural unemployment is expected to fall. For example, measures aimed at increasing competition among companies operating in the product market, ie. that ? falls. This, the Minister of Finance claims, should reduce actual unemployment. How should the bank react in this case? How strong do you think this fiscal policy measure will be?

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