Okun’s law refers to
a) The tendency for recessions in the USA to spread throughout the world
b) The generally stable negative relationship between the output gap and deviations of unemployment from the natural rate
c) The generally stable positive relationship between the output gap and deviations of unemployment from the natural rate
d) The tendency for business cycle volatility to fall over time
e) The negative relationship between unemployment and job vacancies
b) The generally stable negative relationship between the output gap and deviations of unemployment from the natural rate
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An indifference curve shows
a) different combinations of income and prices at which an individual can afford equal quantities of two goods b) different combination of goods that all cost the same c) different quantities of current and future consumption that are consistent with the intertemporal budget constraint d) different combinations of goods that yield the same level of satisfaction e) different levels of satisfaction that can be obtained from a given budget constraint
Refer to the information provided in Figure 27.1 below to answer the question(s) that follow.
Figure 27.1Refer to Figure 27.1. Suppose the economy is at Point A. A(n) ________ can cause a movement to Point E.
A. increase in aggregate demand B. decrease in aggregate demand C. decrease in the price level D. increase in the price level
In a steady-state, sustained increases in the capital-to-labor ratio are only possible if
a. the savings rate increases. b. population growth decreases. c. depreciation decreases. d. technology increases. e. all of the above.
If the shut down rule, p < AVC, is the same in the short run and the long run, explain why the shutdown prices may be different
What will be an ideal response?