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Suppose that the natural rate of unemployment is 5.4% and that the economy is operating at 109% of potential output. (A) Use Okun's law to

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Suppose that the natural rate of unemployment is 5.4% and that the economy is operating at 109% of potential output. (A) Use Okun's law to determine the unemployment rate. (B) If the expected inflation rate is 3.7%, and the short-run Phillips curve has a slope of 1 (that is, when unemployment rises 1%, the inflation rate falls 1%, and vice versa), determine the inflation rate

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