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    Principles of Macroeconomics Study Set 11
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    Exam 16: Household and Firm Behavior in the Macroeconomy: a Further Look
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    Assume the Unemployment Rate Does Not Tend to Fall as Soon
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Assume the Unemployment Rate Does Not Tend to Fall as Soon

Question 55

Question 55

Essay

Assume the unemployment rate does not tend to fall as soon as the economy pulls out of a recession. What would be a good explanation for this?

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Firms are holding excess labor...

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