Explain what is happening to the unemployment rate

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Reference no: EM13107728

1. Presume that the economy is undergoing a recession because of a fall in aggregate demand.
a. Utilizing an aggregate-demand aggregate-supply diagram, portray the current state of the economy.
b. Explain what is happening to the unemployment rate?
c. Use the sticky-wage theory of aggregate supply to describe what will happen to output and the price level in the long-run

Reference no: EM13107728

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