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klasskru [66]
3 years ago
5

If an expansionary policy pushes output beyond the full employment level of gdp:

Business
1 answer:
olga55 [171]3 years ago
8 0
<span>The natural rate of unemployment will drop in this instance. By increasing spending and/or decreasing taxes, aggregate demand is boosted, leading to more people being employed to meet the demand. This moves the natural rate of employment out to a greater level than previously experienced.</span>
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