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a. Apartment Vacancies and Unemployment. In a major city, the vacancy rate for apartments was approximately 5 percent, yet substantial numbers of individuals were searching for new apartments. Explain why this occurs. Relate this phenomenon to unemployment.
b. Understanding Unemployment Differences across Countries. A student looking at Figure 6.2 on page 122argues that Spain must have very high cyclical unemployment compared to Japan because the Spanish unemployment rate is so high. Explain why the student could be right or could be wrong.
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