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What will happen when the economy is growing, businesses are trying to expand, and unemployment is approaching zero?
What will happen when the economy is growing, businesses are trying to expand, and unemployment is approaching zero?
Expert Solution
In the case, when the economy is growing, businesses are expanding, and the unemployment is about to reach zero then
1. There must be a rise in the inflation rate.
2. The real GDP and nominal GDP depicts the growth in output production.
3. The standard of living rises along with a rise in health and education attainment levels.
4. The poverty level declines.
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