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Economics 3. Assume the South Africa economy is in a labour market equilibrium, with an equilibrium level unemployment rate of 8% a stable inflation rate
Economics 3. Assume the South Africa economy is in a labour market equilibrium, with an equilibrium level unemployment rate of 8% a stable inflation rate of 4% and no bargaining gap. Improved business confidence causes an increase in investment spending by firms. Use a graph to demonstrate and explain the impact of the increase in investment spending on (15, incl 5 marks for drawing and labelling of the graphs): i. The unemployment rate(2 marks) ii. The Bargaining gap (2 marks) ili. Inflation (2 marks) iv. Expected inflation (2 marks) v. Phillips curve (2) please show the graphs too
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