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Suppose that an economy can be described by the following three equations: Okun's law: Ut - Ut - 1 = 0.4(gyt - 3%) Philips curve:

Suppose that an economy can be described by the following three equations:

Okun's law: Ut - Ut - 1 = 0.4(gyt - 3%) Philips curve: t = t - 1 = - (Ut - 5%) Aggregate demand: gyt = gmt - t i)

What is the natural rate of unemployment for this economy?

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