Explainthe effects of ae a on the unemployment


Suppose an economy is characterized by the following equations:Price setting: P = (1+ m)(W / A). Wage setting: W = AePe (1- u)(a.) Solve for the unemployment rate if Pe = P but Ae does not necessarily equal A . Explainthe effects of Ae / A on the unemployment rate

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Econometrics: Explainthe effects of ae a on the unemployment
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