The observation that a 1 percent increase in unemployment tends to lead to a 2 percent decrease in real output is known as
A. A recession.
B. Okun's Law.
C. A Lucas Wedge.
D. Under allocation of resources.
Answer: B
You might also like to view...
A specific tax on sellers will
A) shift the demand curve to the right. B) shift the demand curve to the left. C) shift the supply curve to the right. D) shift the supply curve to the left.
Behavioral economics is an approach to the study of consumer behavior
A) that emphasizes psychological limitations and complications that potentially interfere with rational decision making. B) that emphasizes the capabilities of individuals to succeed in attaining all their unlimited wants utilizing limited resources. C) that, in contrast to standard approaches in economics, utilizes the ceteris paribus assumption. D) that, in contrast to standard approaches in economics, relies on real-world data to evaluate the usefulness of economic models.
What is the difference between a normal good and an inferior good? How does this relate to the demand curve?
What will be an ideal response?
Regulators often raise prices instead of lowering them. This is designed to
A. prevent the exit of competitors. B. protect the consumer from cheap products. C. ensure high-quality products. D. ensure workers are adequately paid.