If the natural unemployment rate is 4 percent and potential GDP is $30 billion, then according to Okun's Law, when the unemployment rate falls to 3 percent, real GDP
A) decreases to $29.4 billion.
B) first decreases by 4 percent and then increases by 4 percent.
C) increases to $60 billion.
D) increases to $30.6 billion.
E) remains constant at $30 billion.
D
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The gross estate is
A. very disgusting. B. all property owned by decedent at time of death. C. general property that is held in a trust. D. being phased out of current tax law.
A fall in which of the following would increase the money multiplier?
a. The monetary base b. A change in M1 c. The level of Federal Reserve open market purchases d. An increase in the currency to checkable deposit ratio e. All of the above
To understand how decisions about military expenditures are made, it is probably most important to understand _____
a. geography b. economic warfare c. the political process d. strategic alliances
A firm has market power if it can raise the price of its product and still sell product to customers.
Answer the following statement true (T) or false (F)