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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Suppose an economy is characterized by the equations below.
a. Solve for the unemployment rate if Pe = P but Ae does not necessarily equal A. Explain the effects of (Ae /A) on the unemployment rate. Now suppose that expectations of both prices and productivity are accurate.
b. Solve for the natural rate of unemployment if the markup (m) is equal to 5%.
c. Does the natural rate of unemployment depend on productivity? Explain.
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