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Calculate GDP loss if equilibrium level of GDP is $8,000, unemployment rate is 8.8%, and the...

Calculate GDP loss if equilibrium level of GDP is $8,000, unemployment rate is 8.8%, and the MPC is 0.8 ( Use Okun's law to calculate GDP loss) a) How much money should the government spend to eliminate this GDP loss? b) Calculate the tax cut needed to eliminate this GDP loss. With the natural rate of unemployment being 5.5%

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