Explain: Unemployment can be caused by a decrease of aggregate demand or a decrease of aggregate supply.

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Explain: “Unemployment can be caused by a decrease of aggregate demand or a decrease of aggregate supply.” In each case, specify the price-level outcomes.

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Economics

ISBN: 978-0073375694

18th edition

Authors: Campbell R. McConnell, Stanley L. Brue, Sean M. Flynn

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Question Posted: May 23, 2013 07:55 AM

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Explain: Unemployment can be caused by a decrease of aggregate demand or a decrease of aggregate supply.

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The statement is true although the magnitude of the effect on unemplo...View the full answer

Economics

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