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Sustainable long-run equilibrium

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Reference no: EM131203777

Explain why relatively flat as opposite relatively steep labor demand curves are more consistent with the empirical observation that there are relatively minor changes in the real wage rate over the course of the business cycle.

Is sustainable long-run equilibrium always reached when the AD and SAS curves intersect? Why or why not?

If the equilibrium real wage remains constant, what happens to the nominal wage when the actual inflation rate exceeds the expected inflation rate?

"In the steady state, the government benefits from inflation." Explain.

Reference no: EM131203777

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