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How is the natural rate of unemployment illustrated in an AD/AS model?

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter24: The Aggregate Demand/aggregate Supply Model

Section: Chapter Questions

Problem 37RQ: What are some of the ways in which exports and imports can affect the AD/AS model?

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How is the natural rate of unemployment illustrated in an AD/AS model?

Definition Definition State in which an individual is without work, despite actively seeking employment opportunities. The unemployment rate refers to the percentage of the workforce that is currently unemployed. Unemployment is one of the key indicators of the conditions prevailing in an economy. It is therefore considered a barometer that points out the condition of an economy.

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What are some of the ways in which exports and imports can affect the AD/AS model?
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