Okun's law:
A. measures the trade-off between the rate of inflation and the rate of unemployment.
B. indicates the number of years it will take for a constant rate of inflation to double the price
level.
C. quantifies the relationship between nominal and real incomes.
D. shows the relationship between the unemployment rate and the size of the negative GDP
gap.
D. shows the relationship between the unemployment rate and the size of the negative GDP
gap.
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In the above figure, what amount of subsidy per student would government have to provide to colleges if its desired objective was to achieve an efficient level of education, 50 million students per year?
A) $6,000 per year B) $12,000 per year C) $18,000 per year D) $27,000 per year
Suppose that the consumer price index of a country was 160 at year-end 2007 and 168 at the end of 2008 . What was the country's inflation rate during 2008?
a. 5 percent b. 8 percent c. 60 percent d. 68 percent
Holding everything else unchanged, higher interest rates in foreign countries relative to interest rates
A) increase the demand and reduce the supply of dollars leading to an increase in the exchange rate. B) decrease the demand and the supply of dollars leading to an decrease in the exchange rate. C) increase the demand and the supply of dollars leading to an increase in the exchange rate. D) decrease the demand and increase the supply of dollars leading to a decrease in the exchange rate
Real GDP per capita is real GDP divided by the number of workers in a country.
Answer the following statement true (T) or false (F)