You are given the following information about the economy.
The natural rate of unemployment is 0.04,Okun's Law is that ,and the Phillips curve relationship is
(a)What was the full-employment level of output in each year?
(b)Calculate the growth rate of full-employment output each year.
(c)If expected inflation was 0.04 for all four years,what was the inflation rate each year?
Correct Answer:
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