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Unformatted text preview: and duplicate it and reposition the new line in it proper position that reflects its impact on the state of the economy from its initial state point 0. y 3. Now make the same type of comparison relations as made on (2) for the following variables: a. Y (gdp) b. N ( employment) c. K U (Capacity Utilization of Capital) d. U ( Unemployment) e. (Inflation) 4. Discuss how the economy will adjust in the long run if no policy is chosen to counter the effects of the supply side shock. 5. Choose a policy to implement as a corrective to the above shock and show the effects of this policy in the short run and in the long run....
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- Winter '10