Ifreal GDP growth is -10% then according to Okun's law, the unemployment rate should be increasing by 13 percentage points decreasing by 13 percentage points increasing by 6.5 percentage points decreasing by 6.5 percentage points All else the same a higher level of long-run real GDP will not change the output gap affect the output gap in an unknown way increase the output gap decrease the output gap In the shortrun, an economy experiences a rise in ination and real interest rate while real GDP is falling. Which of the following could've caused that? rise in expected ination increase in autonomous consumption sudden loosening of monetary policy fall in government spending Based on the monetary policy reaction function, an increase in real GDP should lead Central Banks to decrease nominal and real interest rates increase nominal and real interest rates increase nominal but not real interest rates decrease nominal but not real interest rates