According to Okun's law, when cyclical unemployment increases by one percentage point, the recessionary gap ________ by ________ percent of potential output.
A. closes; two
B. closes; one
C. widens; one
D. widens; two
Answer: D
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The income-expenditure model focuses on changes in
A) price. B) operational lags. C) output levels. D) import restrictions.
Suppose a country has a national debt of $5,000 billion, a GDP of $20,000 billion, and a budget surplus of $130 billion. How much will its new national debt be?
A) $5,130 billion B) $4, 870 billion C) $15,130 billion D) $19, 870 billion
In order to successfully increase net revenue by charging buyers different prices, a seller must
What will be an ideal response?
Perfectly competitive firms must make all of the following decisions except
A. what price to charge for their output. B. how much output to supply. C. how much of each input to demand. D. which production technology to use.