Okun's Law states that for each percentage point that the unemployment rate is above its natural rate, there is a ________ percent gap between real GDP and potential GDP
A) 4
B) random
C) 2
D) 6
E) 8
C
You might also like to view...
If price elasticity of supply is large and demand is price-inelastic, then the firm can earn positive profits by increasing the price
a. True b. False Indicate whether the statement is true or false
When supply changes there is a ____, and when the price changes there is a ____.
A. movement along the supply curve; shift in the supply curve B. shift in the supply curve; shift in the supply curve C. shift in the supply curve; movement along the supply curve D. movement in the quantity supplied; shift in selling plans E. change in the quantity supplied; change in supply
If one producer has the absolute advantage in the production of all goods, then that same producer will have the comparative advantage in the production of all goods as well
a. True b. False Indicate whether the statement is true or false
Which of the following is NOT one of the components of aggregate demand?
What will be an ideal response?