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19 Jul 2018
a. Suppose the economy is operating at its full employment level output. Does it mean that the unemployment rate is ZERO? Explain.
b. What is the difference between a recessionary gap and an inflationary gap? Explain
c. If the actual economy is operating below its full-employment long run equilibrium, then an inflationary gap will develop. If your answer yes, explain. If your answer is no, explain
a. Suppose the economy is operating at its full employment level output. Does it mean that the unemployment rate is ZERO? Explain.
b. What is the difference between a recessionary gap and an inflationary gap? Explain
c. If the actual economy is operating below its full-employment long run equilibrium, then an inflationary gap will develop. If your answer yes, explain. If your answer is no, explain
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Reid WolffLv2
19 Jul 2018