According to Okun's Law, for each 1 percentage point that the unemployment rate is above the natural unemployment rate, then
A) the inflation rate is greater than the expected inflation rate by 2 percentage points.
B) real GDP is above potential GDP by 2 percent.
C) real GDP is below potential GDP by 2 percent.
D) the real interest rate is below the natural real interest rate by 1 percentage point.
E) the inflation rate is less than the expected inflation rate by 1 percentage point.
C
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A mugger steals $25 from John Doe. What can an economist conclude?
A) Nobody gained in the "exchange." B) Both parties gained in the "exchange." C) Only the mugger's wealth has increased. D) Nothing, because economists study strictly voluntary exchanges.
Which of the following types of unemployment is the hardest to reduce?
a. Cyclical unemployment b. Structural unemployment c. Voluntary unemployment d. Frictional unemployment e. Seasonal unemployment
The greater the elasticity of demand of a taxed item, the greater the tax revenue received
a. True b. False Indicate whether the statement is true or false
The added revenue that a firm takes in when it increases output by one additional unit is _______ revenue.
A) total B) marginal C) variable D) fixed