Okun's Law says that the difference between the unemployment rate and the natural unemployment rate determines
A) potential GDP.
B) real GDP.
C) the real interest rate.
D) the gap between potential GDP and real GDP.
E) the gap between the inflation rate and the unemployment rate.
D
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The financial crisis of 2008 was triggered by:
A. a speculative bubble in the U.S. housing market. B. austerity measures introduced by the U.S. government to reduce the federal deficit. C. increased trade with China. D. the economic integration of the European Union.
Which statement about the total variable cost curve is true?
a. It begins at the origin and increases before decreasing again. b. The total variable cost curve is the same at all levels of output. c. The total variable cost curve is increasing but at a decreasing rate. d. It begins at the origin and is always increasing. e. There is no such thing as a total variable cost curve.
The post-World War II record shows that recessionary gaps may be long-lasting because ____ tends not to occur
a. deflation b. reflation c. stagflation d. disinflation
The magnitude of intangible losses can sometimes be estimated by investigating the average
A. annual costs borne by victims of white-collar crimes, such as embezzlement. B. annual incomes of police detectives and private investigators. C. dollar amounts paid by insurance companies as reimbursement for property losses. D. dollar amounts individuals willingly pay to reduce their chance of being a victim.