When the equilibrium real GDP is below potential GDP, how does the unemployment rate comparewith the natural

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When the equilibrium real GDP is below potential GDP, how does the unemployment rate comparewith the natural rate? What is the result of this state of affairs that restores the long-run equilibrium?

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Macroeconomics

ISBN: 9780137470822

14th Edition

Authors: Michael Parkin

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Question Posted: Apr 07, 2024 07:00 AM

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When the equilibrium real GDP is below potential GDP, how does the unemployment rate compare with the natural rate? What is the result of this state of affairs that restores the long-run equilibrium?
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When the equilibrium real GDP is below potential GDP, how does the unemployment rate comparewith the natural

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GDP is less than potential GDP the unemployment rat...View the full answer

Macroeconomics

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