According to Okun's law, when cyclical unemployment is positive, the output gap:
A. equals zero.
B. is positive.
C. equals the rate of cyclical unemployment.
D. is negative.
Answer: D
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Use the following table to answer the question below. Jane's Production Possibilities SchedulePounds of Green BeansPounds of Corn08020604040602080 0Jane's opportunity cost of producing 1 pound of corn is ________ pound(s) of green beans.
A. 2 B. 4 C. 1/2 D. 1
Based on the graph showing rational expectations and the AD/AS model, expansionary policies will cause ______.
a. a move to a lower point on the aggregate demand curve
b. a move to a higher point on the aggregate demand curve
c. the aggregate demand curve to shift to the left
d. the aggregate demand curve to shift to the right
Suppose the following two events occur in the market for elementary school teachers:
a. Overcrowded schools and education budget cuts have discouraged young college students from pursuing careers in teaching. b. With an increasing birth rate, the number of children entering the elementary school system is expected to increase significantly over the next ten years. What is likely to happen to the equilibrium wage and quantity of teachers as a result of these two events? A) The equilibrium wage rises and the effect on the equilibrium quantity of elementary school teachers is indeterminate. B) The equilibrium quantity falls and the effect on the equilibrium wage of elementary school teachers is indeterminate. C) The equilibrium quantity falls and the equilibrium wage of elementary school teachers rises. D) The equilibrium quantity and the equilibrium wage of elementary school teachers fall.
When talking about a coupon bond, face value and ________ mean the same thing
A) par value B) coupon value C) amortized value D) discount value