1. How is it mechanically possible for both total
employment and the unemployment rate to fall? Your answer should be
one to two sentences long.

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2. Is it possible for nominal interest rates to be
negative? Is it possible for real interest rates to be negative?
Your answer should be two sentences long.

3. If expected inflation is 5% and actual inflation
is 6%, what will happen to real growth? Your answer should be one
to two sentences long.

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