Suppose the economy is in short-run equilibrium, with actual real GDP exceeding potential real GDP. In the

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Suppose the economy is in short-run equilibrium, with actual real GDP exceeding potential real GDP. In the long run, real wages will rise bringing the economy back to potential real GDP.

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Money Banking and Financial Markets

ISBN: 978-0078021749

4th edition

Authors: Stephen Cecchetti, Kermit Schoenholtz

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Posted Date: Mar 11, 2021 07:58 PM

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Suppose the economy is in short-run equilibrium, with actual real GDP exceeding potential real GDP. In the

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TRUE In Long run the natural level of employment occurs where the real wage adjusts so that th... View the full answer

Money Banking and Financial Markets

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