According to Okun's law, if full-employment output is $5000 billion, then each percentage point of unemployment sustained for one year reduces output by
A. $50 billion.
B. $150 billion.
C. $100 billion.
D. $200 billion.
Answer: C
You might also like to view...
Debit cards and e-checks are not money because
A) they can be forged easily. B) they can fail their purpose of being mediums of exchange as a result of technical difficulties. C) they are just instruments to transfer money between people. D) not all banks offer them and not all businesses accept them. E) they are not regulated by the government.
Which of the following concerns were raised as a result of record low interest rates in 2012?
A) high perceived risk of default B) high interest rate risk C) corporations facing a lack of demand for bonds D) high risk premiums on investment-grade corporate bonds
A decrease in currency in circulation combined with an equal increase in savings account deposits would: a. increase both M1 and M2
b. increase M1 but have no effect on M2. c. decrease both M1 and M2. d. decrease M1 but have no effect on M2.
Automatic stabilization occurs
A) when the Congress makes changes to transfer payment programs. B) because monetary policy is effective. C) because government purchases fluctuate with real GDP. D) because taxes and transfer payments fluctuate with real GDP.