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State whether the following statements are TRUE or FALSE, then explain briefly. a. When an economy is at full employment, its unemployment rate would be

State whether the following statements are TRUE or FALSE, then explain briefly.

a. When an economy is at full employment, its unemployment rate would be zero.

b. A government would run a budget surplus when using a contractionary fiscal policy to cool down the overheated economy.

c. The long-run Phillips curve indicates that there is no trade-off between inflation and unemployment.

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