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Mock test

Q Question 1 The business cycle component of the log of real per-capita GDP is equal to [2%] Question 2 Competitive equilibrium [2%] Question 3 The real wage denotes [2%] Question 4 We assume leisure is a normal good. This implies that [2%] Question 5 The labour supply curve slops downward when [2%]

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1 a) log of actual real GDP - log of trend GDP. 2 a) is a state of economy where prices and quantities are such that the behaviour of price-taking consumers and firms is consistent.