According to Okun's Law, if the natural unemployment rate is 5 percent, the actual unemployment rate is 4 percent, and potential GDP is $15 trillion, then actual real GDP is
A) $14.7 trillion.
B) $15.4 trillion.
C) $15.0 trillion.
D) $12.0 trillion.
E) $15.3 trillion.
E
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Which of the following is likely to decrease the exchange rate of Yen to euros (¥/€)?
A) an increase in investment opportunities in the U.S. B) a decrease in investment opportunities in the eurozone C) a decrease in demand for European goods in Japan D) an increase in investment opportunities in the eurozone
The federal income tax system is regressive.
Answer the following statement true (T) or false (F)
If demand is price inelastic, when price falls, the total revenue ______, and when price rises, the total revenue _____.
a. falls; remains constant b. remains constant; rises c. falls; rises d. rises; falls
A year-long drought that destroys most of the summer's crops would be considered a:
A. short-run supply shock. B. long-run demand shock. C. long-run supply shock. D. short-run demand shock.