Which of the following is NOT a reason given by economists for the failure of Okun's law to account for the rise in unemployment during the recession of 2007-2009?
A) increased willingness among firms to lay off workers during recessions
B) a surge in productivity during the recession
C) the unusual severity of the recession
D) it does not take into account the effect of the stimulus
D
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GDP may be computed using the expenditure or value-added approaches
Indicate whether the statement is true or false
Improvements in a country's standard of living are brought about in the long run by
A) technological progress. B) growth in the population. C) constructing more machines and buildings. D) immigration policy.
The two big problems facing insurance companies in trying to manage risk are:
A. adverse selection and moral hazard. B. moral hazard and diversification. C. risk pooling and diversification. D. risk pooling and adverse selection.
Grown children fawning over an elderly parent in order to try to secure a larger inheritance is an example of
A) rent seeking. B) logrolling. C) rational ignorance. D) public choice.