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    Contractionary Gap with Unemployment, Price Level, and Wages

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    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?

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    https://brainmass.com/economics/unemployment/contractionary-gap-unemployment-price-level-wages-97115

    Solution Preview

    What does a contractionary gap imply about the actual rate of unemployment relative to the natural rate?
    It implies that the actual rate of ...

    Solution Summary

    Actual Price Levels are briefly mentioned. The expert examines the contractionary gap with unemployment, price level and wages.

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