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Chapter 8

Chapter 8

Chapter 8. Potential GDP, Natural Unemployment, and the Business Cycle. CHAPTER CHECKLIST. Explain the forces that determine potential GDP and the distribution of income between labor and other factors of production.

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C H A P T E R C H E C K L I S T

C H A P T E R C H E C K L I S T

1. 2. 3. C H A P T E R C H E C K L I S T. When you have completed your study of this chapter, you will be able to. Sketch the aggregate supply-aggregate demand ( AS-AD ) model and explain how real GDP and unemployment fluctuate in a business cycle.

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Potential GDP and the Natural Unemployment Rate

Potential GDP and the Natural Unemployment Rate

PART 3. THE REAL ECONOMY. 8. Potential GDP and the Natural Unemployment Rate. CHAPTER. 1. 2. C H A P T E R C H E C K L I S T. When you have completed your study of this chapter, you will be able to.

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Ch. 7. At Full Employment: The Classical Model

Ch. 7. At Full Employment: The Classical Model

Ch. 7. At Full Employment: The Classical Model. The relationship between the quantity of labor employed and real GDP What determines the full-employment level of employment, real wage rate and potential GDP What determines unemployment when the economy is at full employment

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Chapter 6: Economic Growth

Chapter 6: Economic Growth

Chapter 6: Economic Growth. Estimate economic growth and implications of sustained growth for standard of living. Trends in economic growth in U.S. and rest of world. Sources of economic growth Alternative theories and policies to improve growth. The Basics of Economic Growth.

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Ch. 7. At Full Employment: The Classical Model

Ch. 7. At Full Employment: The Classical Model

Ch. 7. At Full Employment: The Classical Model. The relationship between the quantity of labor employed and real GDP Determinants of potential GDP, employment, and real wage rate Determinants of the natural rate of unemployment

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Trends in U.S Economic Growth

Trends in U.S Economic Growth

Trends in U.S Economic Growth. Growth in the U.S. Economy From 1908 to 2008, annual growth in real GDP per person in the United States averaged 2% . Real GDP per person fell precipitously during the Great Depression and rose rapidly during World War II.

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