What must happen to real and nominal wages

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(Contractionary Gap) What does a contractionary gap imply about the actual rate of unemployment relative to the natural rate? What does it imply about the actual price level relative to the expected price level? What must happen to real and nominal wages in order to close a contractionary gap?

Reference no: EM13232331

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What must happen to real and nominal wages : (Contractionary Gap) What does a contractionary gap imply about the actual rate of unemployment relative to the natural rate What does it imply about the actual price level relative to the expected price level
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