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Mathematics, 04.07.2020 02:01 Lindy4886

For every 1% increase in unemployment, there is a 2%

decrease in potential GDP. This

creates a GDP gap. What is the GDP

gap when there is 4.5%

unemployment?

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Answers: 1

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For every 1% increase in unemployment, there is a 2%

decrease in potential GDP. This
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