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Define cyclical unemployment

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Define cyclical unemployment and explain why it is targeted by stabilization policy.

Explain what the natural rate of unemployment or full employment means. How can the natural rate of unemployment be 6% at one time and 5% at another time?

Indicate whether the following statement is true or false and EXPLAIN why. If the CPI rises at 5% per year, then every individual in the country needs exactly a 5% increase in their income for their standard of living to remain constant.

Reference no: EM131277952

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