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Relationship between productivity growth and u rate

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Reference no: EM132413288

a. Do we know unambiguously that productivity growth adversely impacts employment in the SR? Why or why not? As part of your answer, provide the appropriate graph as well as some empirical evidence.

b. What is the relationship between productivity growth and u rate in the MR? Use the appropriate version of the WS-PS model to explain -- and show -- why a productivity growth slowdown would be associated with a higher un.

Reference no: EM132413288

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