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Suppose that your economy is in long run equilibrium. The aggregate demand and aggregate supply in the market is represented by the following functions: AD:

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Suppose that your economy is in long run equilibrium. The aggregate demand and aggregate supply in the market is represented by the following functions: AD: P = 600 - 0.5Y AS: P = 30 + 0.2Y Something occurs in the economy and the short run aggregate supply changes to: AS: P = 200 + 0.2Y Suppose that a 10 unit decrease in output leads to a 1% increase in the unemployment rate. If the economy is at the natural rate of unemployment in long run equilibrium and the natural rate of unemployment is 5%, what is the current unemployment rate? Instructions: If your answer is not whole number you should leave two numbers after the decimal. You do not need the percentage sign

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