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may be out of its unemployment equilibrium for quite a long time after a shock occurs.The novelty of the model is that it … decreasein job creation in response to the depreci-ation of human capitalfollowing an adverse cyclical shock, does not lead to …
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Recessions and expansions are often caused or reinforced by developments in private consumption - the largest component of aggregate demand - which, as a result, varies over the business cycle. As such, an accurate measurement of the cyclical component of consumption and an understanding of its...
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