The relationship between the output gap and the cyclical rate of unemployment is known as
A) the Phillips curve.
B) the LM curve.
C) Murphy's law.
D) Okun's law.
D
You might also like to view...
When negative externalities exist in a market, if the producers are forced to pay a Pigouvian tax then:
A. those who interact in the market will gain surplus. B. producers will gain surplus. C. those who do not interact in the market but are affected by the externality will lose surplus. D. those who interact in the market will lose surplus.
If a country's domestic price of a good is lower than the world price, then that country has a comparative advantage in producing that good
a. True b. False Indicate whether the statement is true or false
Say a competitive firm is producing at point where ATC = $10, AVC = $2. If the firm charges $5 for its output, then in the short-run this firm should
A. exit the industry. B. shutdown production. C. continue to operate. D. try to reduce its fixed costs.
Refer to the graph shown. Assuming that the industry operates under conditions of perfect competition and that the firms seek to maximize profits, this firm will:
A. produce 1,200 square feet of construction in the short run. B. incur economic losses in the short run. C. produce 800 square feet of construction per month in the short run. D. produce 1,000 square feet of construction per month in the short run.