Which of the following statements is likely to be true according to Okun's Law?
A) The unemployment rate remains constant when the growth rate of real GDP is 0%.
B) The unemployment rate remains constant when the growth rate of real GDP is 3%.
C) The unemployment rate increases when the growth rate of real GDP is above 3%.
D) The unemployment rate declines when the growth rate of real GDP is below 3%.
B
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A tax of a specific absolute sum, say $100, levied on every person or every household is known as a(n)
a. excise tax b. sales tax c. external tax d. duty e. poll tax
The law of diminishing returns
a. explains why marginal cost eventually increases as output expands. b. implies that average fixed cost will remain unchanged as output expands. c. is true for physical production activities but not for activities such as studying. d. applies to a capitalist economy but would be irrelevant if the means of production were owned by the state.
"Offshoring":
A. is the movement of money to foreign bank accounts. B. is the shifting of work previously done by domestic workers to workers located in other countries. C. applies only to manufactured goods. D. hurts all domestic industries in a country.
Refer to the given data. Suppose that consumption decreased by $2 billion at each level of DI in each of the three countries. We can conclude that the:
Answer the question on the basis of the following consumption schedules. DI signifies disposable income and C represents consumption expenditures. All figures are in billions of dollars.
A. marginal propensity to consume will remain unchanged in each of the three countries.
B. marginal propensity to consume will decline in each of the three countries.
C. average propensity to save will fall at each level of DI in each of the three countries.
D. marginal propensity to save will rise in each of the three countries.