Describe the relationship between the unemployment rate and the natural unemployment rate as the output gap fluctuates

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Describe the relationship between the unemployment rate and the natural unemployment rate as the output gap fluctuates between being positive and being negative.

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Foundations of Macroeconomics

ISBN: 978-0134492001

8th edition

Authors: Robin Bade, Michael Parkin

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Question Posted: May 18, 2018 02:21 AM

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Describe the relationship between the unemployment rate and the natural unemployment rate as the output gap fluctuates

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When real GDP is less than potential GDP so that the output gap is negative the u...View the full answer

Foundations of Macroeconomics

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