Assume that for the second quarter of 2012, actual real GDP was $125.5 billion and potential real GDP was $142.7 billion. According to Okun's law, the cyclical unemployment rate during the second quarter of 2012 was
A) 5.7%.
B) 6.0%.
C) 6.9%.
D) 7.4%.
B
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Suppose the airplane market is an oligopoly. According to the figure above, the price can range as high as ________ and as low as ________
A) $13 million per plane; $1 million per plane B) $30 million per plane; $13 million per plane C) $13 million per plane; $13 million per plane D) $1 million per plane; $1 million per plane E) None of the above answers is correct.
According to the simple quantity theory of money, a change in the money supply of 9.6 percent would lead to a
a. 9.6 percent change in velocity. b. 9.6 percent change in real GDP. c. 9.6 percent change in nominal GDP. d. 9.6 percent change in aggregate supply.
A tariff has one distinct advantage over a quota. It increases tax revenues to the government
a. True b. False Indicate whether the statement is true or false
Assume that the central bank purchases government securities in the open market. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the GDP Price Index and current international transactions in the context of the Three-Sector-Model?
a. The GDP Price Index falls, and current international transactions become more negative (or less positive). b. The GDP Price Index and current international transactions remain the same. c. The GDP Price Index rises, and current international transactions remain the same. d. There is not enough information to determine what happens to these two macroeconomic variables. e. The GDP Price Index rises, and current international transactions become more positive (or less negative).