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Unformatted text preview: rate and the labor force participation rate? 3. What is the difference between Real GDP and nominal GDP? 4. Given that in 1995 real GDP was $6,742.1 and nominal GDP was $7,265.4, what is the value of the GDP deflator? 5. For the Keynesian model, explain the reasons why the aggregate demand curve is downward sloping? 6. What is the difference between structural and frictional unemployment? 7. What are the components of aggregate demand? 8. If full employment GDP is greater than equilibrium GDP, what problem is this economy facing? (recession or inflation) 9. What is a business cycle? 10. How does a recession differ from a depression?...
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- Spring '08