The accompanying scatter diagram shows the relationship between the unemployment rate and the output gap in Canada
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What is the unemployment rate when aggregate output equals potential output? What would the unemployment rate be if the output gap were 2%? What if the output gap were ˆ’3%? What do these results tell us about the coefficient m in Okun€™s law?
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The accompanying figure shows a line drawn through the dots relating the une...View the full answer
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Related Book For 
Macroeconomics
ISBN: 978-1319120054
3rd Canadian edition
Authors: Paul Krugman, Robin Wells, Iris Au, Jack Parkinson
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