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What Reasons Would Economists Give for an Increase in the Natural

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What reasons would economists give for an increase in the natural rate of unemployment that could have occurred from 2007 to 2011? What argument would suggest that the natural rate of unemployment may not have risen?


Definitions:

Total Stockholders' Equity

The total amount of funds contributed by shareholders plus the retained earnings of a company.

Stock Dividend

A distribution of additional shares of a company to its shareholders instead of paying dividends in cash.

Stock Split

A corporate action by a company to divide its existing shares into multiple ones to boost the liquidity of the shares, often done when share prices are high.

Paid-In Capital

Total amount of cash and other assets paid into the corporation by stockholders in exchange for capital stock.

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