In economics, the concept of active government intervention in the macroeconomy was first emphasized by

Monetary policy authorities can affect real interest rates

A) in the short run, but not in the long run. B) in the long run, but not in the short run. C) permanently. D) both in the long run and the short run.

Suppose the Okun's law coefficient is 2, the full-employment level of output is $5000 billion, and the natural rate of unemployment is 6%

(a) What is the current level of output if the current unemployment rate is 8%? (b) Suppose the unemployment rate falls to 5%; what is the current level of output? (c) Suppose structural changes in the economy raise the natural rate of unemployment to 7%, and lower the full-employment level of output to $4800 billion. If the current unemployment rate is 8%, what is the current level of output?