c. Was the inflation rate in 2016 to have been higher or lower than the inflation rate in 2015? Does your answer depend on whether the recession that started in December 2015 was caused by a supply shock or by a change in a component of aggregate demand? b. Real GDP is 2016 is higher than 2015, the unemployment rate increased substantially from 2015 to 2016. Why did this increase in unemployment occur? a. In 2015, Real GDP is higher than potential GDP. Explain how is this possible Consider the data of the following table for the years 2015 and 2016

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