For every 1 percentage point that the actual unemployment rate exceeds the natural rate, a 2 percentage point negative GDP gap occurs. This is a statement of:
A. Taylor's rule.
B. Okun's law.
C. Say's law.
D. the Coase theorem.
B. Okun's law.
You might also like to view...
The relationship between the quantity of inputs and the quantity of outputs is called:
A. an input-output function. B. a production function. C. a cost function. D. a resource function.
The supply of dollars in foreign exchange markets is
A) determined by the Federal Reserve's Board of Governors. B) determined by the demand for U.S. goods. C) determined by the U.S. demand for foreign goods. D) a function of the international banking system.
The intersection between demand of US dollar and the supply of US dollar is known as
a. Inflation rate b. Exchange rate c. Price d. Quantity
A tax multiplier equal to -4.30 would imply that a $100 tax increase would lead to a:
a. 43 percent decrease in real GDP. b. $430 decline in real GDP. c. $430 increase in real GDP. d. 4.3 percent increase in real GDP. e. 4.3 percent decrease in real GDP.