Question: 3. Explain how Brouwer's Fixed Point Theorem can be sued to show that an economy specified by an aggregate excess demand function has an equilibrium

3. Explain how Brouwer's Fixed Point Theorem can be sued to show that an economy specified by an aggregate excess demand function has an equilibrium price vector. Note that you are not asked to prove the theorem

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=+ c. What is the natural rate of unemployment for the population you represent?

=+Wage rigidity Structural unemployment Insiders versus outsiders Effi ciency wages Discouraged workers

=+ 3. Give three explanations why the real wage may remain above the level that equilibrates labor supply and labor demand.