Okun's law shows that when the unemployment rate is below the natural rate,

A) inflation is higher than expected.
B) inflation is lower than expected.
C) output is below potential.
D) output is above potential.


D

Economics

You might also like to view...

If the rental rate increases, we know that output and labor input will fall in the long run.

Answer the following statement true (T) or false (F)

Economics

Fill in the blank: Firms under perfect competition would enjoy ________ market power

A) absolutely no B) some C) much D) total

Economics

In the figure above, the curve going through point A represents

A) an upward-sloping demand curve. B) the line of equality. C) the wage curve. D) the Lorenz curve.

Economics

According to the text, the relationship between economic growth and the degree of how closed an economy is

A) positive. B) negative. C) constant. D) unstable.

Economics