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    Foundations of Macroeconomics Study Set 1
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    Exam 15: The Short-Run Policy Tradeoff
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    If the Economy Has a Natural Unemployment Rate of 4
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If the Economy Has a Natural Unemployment Rate of 4

Question 186

Question 186

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If the economy has a natural unemployment rate of 4 percent and potential GDP of $5 trillion, what will be real GDP according to Okun's Law if the unemployment rate rises to 5 percent?

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