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Given: Inflation rate in Macroland was 4.5% in 2009, -2.7% in 2010, and -1.8% in 2011. Determine whether each of the following statements is true or false:
a. The ave P level in Macroland decreased in 2010.
b. The given data suggest that the ave P level in Macroland went up in 2009.
c. There was disinflation in Macroland in 2010.
d. The ave P level in Macroland in 2011 was negative.
2. In the Solow model, population growth determines:
a. the rate of economic growth.
b. the steady state level of per capita output.
c. the rate of technological progress
d. the rate of saving.
e. None of the above
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Adjust the following graph to show the changes in the market between 2001 and 2002.
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