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Chapter 19: Macroeconomic Policy Around the World

Q 5.

Page 471

What are the different policy tools for dealing with cyclical unemployment?

Q 6.

Page 471

Explain how the natural rate of unemployment may be higher in low-income countries.

Q 7.

Page 471

How does indexing wage contracts to inflation help workers?

Q 8.

Page 471

Use the AD/AS model to show how increases in government spending can lead to more inflation.

Q 9.

Page 471

Show, using the AD/AS model, how governments can use monetary policy to decrease the price level.

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