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    Principles of Macroeconomics Study Set 12
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    Exam 15: Household and Firm Behavior in the Macroeconomy: a Further Look
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    When Firms Hold Excess Labor, the Unemployment Rate Drops Faster
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When Firms Hold Excess Labor, the Unemployment Rate Drops Faster

Question 25

Question 25

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When firms hold excess labor, the unemployment rate drops faster during an expansion.

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