What is Okun's Law?
What will be an ideal response?
Okun's Law says that for each percentage point that the unemployment rate is above the natural unemployment rate, there is a 2 percent gap between real GDP and potential GDP.
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Suppose that the equilibrium price of french fries rises while the equilibrium quantity falls. The most likely explanation for these changes is:
A. an increase in the supply of french fries. B. an increase in demand for french fries. C. a decrease in demand for french fries. D. a decrease in the supply of french fries.
Other things being equal, an increase in consumption spending implies
A) a decline in saving. B) that economic growth will soon increase. C) a higher standard of living in the future. D) a decline in government spending.
What are the three basic economic questions that must be answered by all societies?
What will be an ideal response?
Refer to Scenario 15.3. $X would be higher if
A) her income were higher and she were younger. B) her income were higher and she were older. C) her income and the mortality rates for someone of Ms. Qwerty's statistical profile were both lower. D) her income and the mortality rates for someone of Ms. Qwerty's statistical profile were both higher. E) she were older and the relevant mortality rate were lower.