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The unemployment rate is 10.1%, the natural rate of unemployment is 6.5%, and the potential rate of GDP growth is 2.75%. If the coefficient of Okun's law is 0.4%, real GDP must grow at a rate of % in order to reduce the unemployment rate to the natural unemployment rate. (Enter your response rounded to two decimal places.)

The unemployment rate is 10.1%, the natural rate of unemployment is 6.5%, and the potential rate of GDP growth is 2.75%. If the coefficient of Okun's law is 0.4%, real GDP must grow at a rate of % in order to reduce the unemployment rate to the natural unemployment rate. (Enter your response rounded to two decimal places.)

Macroeconomics: Private and Public Choice (MindTap Course List)
Macroeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506756
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter8: Economic Fluctuations, Unemployment, And Inflation
Section: Chapter Questions
Problem 4CQ
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K The unemployment rate is 10.1%, the natural rate of unemployment is 6.5%, and the potential rate of GDP growth is 2.75%. If the coefficient of Okun's law is 0.4%, real GDP must grow at a rate of % in order to reduce the unemployment rate to the natural unemployment rate. (Enter your response rounded to two decimal places.)
Transcribed Image Text:K The unemployment rate is 10.1%, the natural rate of unemployment is 6.5%, and the potential rate of GDP growth is 2.75%. If the coefficient of Okun's law is 0.4%, real GDP must grow at a rate of % in order to reduce the unemployment rate to the natural unemployment rate. (Enter your response rounded to two decimal places.)
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