According to Okun's Law, when the natural employment rate is 6 percent and potential GDP is $10 trillion, then when actual employment is 7 percent, real GDP is
A) $9.9 trillion. B) $8 trillion. C) $10.1 trillion. D) $9.8 trillion. E) $10.2 trillion.
D
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If as output increases average product increases, then ________
A) average total cost decreases B) average fixed cost decreases C) marginal cost decreases D) average variable cost decreases
Wage reduction policies are less common than layoffs because
A) workers never prefer wage reduction policies. B) workers always trust the firm to tell the truth. C) of asymmetric information. D) of adverse selection problems.
Unemployment data in the U.S. are published by the:
a. Bureau of Economic Analysis. b. Bureau of Labor Statistics. c. Department of Commerce. d. Bureau of Federal Intelligence. e. Internal Revenue Service.
The market for smartwatches is becoming very competitive. The increase in competition in this market is an example of how the market responds to
A) changes in population.
B) increases in income.
C) changes in consumer tastes.
D) decreases in the price of smartphones (a substitute for the product).