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University of California, Berkeley ECON 100B Problem Set 2 Summer 2017 Solutions v2
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Econ 100B: Economic Analysis { Macroeconomics Problem Set #2 { Solutions Due Date: July 6, 2017 1. Comparing the output and unemployment gaps shown on slide 26 of lecture 8: (a) Would you characte rize the direction of these fluctuations as generally procyclical, countercyclical, or acyclical? Why? The direction of these fluctuations is generally countercyclical because almost all of the movements in the output gap have a corresponding opposite direction of movement by the unemployment gap. (b) ...
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