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Natural level of output

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Consider an economy with output equal to the natural level of output. Now suppose there is an unemployment benefits 2.1 Using AD AS model, show the effects of an increase in unemployment benefits on the position of the AD and AS curve in e short run and in the medium run? price level in the 2.2 How will the increase in unemployment benefits affect output and the short run and in the medium run?

Reference no: EM131902093

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