The prior question: Assume the same values for the economy given in the prior problem, namely, C_o = 60, G = 330, T = 240, I = 100, X = 60, M = 75, b = mpc = .95 and t =.1, the actual unemployment rate = 3.8%, and the natural unemployment rate is 4.7%.

1.

Given the values in the prior problems, what does Okun's Law tell us to do?

decrease Y by 2.6%
	decrease Y by 2.4%
	decrease Y by 1.8%
	decrease Y by 1.0%
	decrease Y by 0.8%

2.

Given the values in the prior problems, in order to achieve full employment, how many dollars must Y decrease?

$17.50
	-$19.0
	-$22.59
	-$28.09
	-$30.66