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Does an increase in the unemployment rate necessarily mean a decline in the size of the labour force? Why is a positive unemployment ratemore than

  1. Does an increase in the unemployment rate necessarily mean a decline in the size of the labour force? Why is a positive unemployment ratemore than 0 percentfully compatible with full employment?
  2. Explain how an increase in your nominal income and a decrease in your real income might occur simultaneously. Who loses from inflation? Who gains?
  3. Why is investment spending unstable?

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