Okun's law states that for every 1-percentage-point increase in the cyclical unemployment rate, real GDP growth
A) must increase by 1 percentage point for the economy to keep from experiencing a recession.
B) decreases by about 2 percentage points.
C) declines for 1 year.
D) increases by 1 percentage point.
B
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In the past, the Department of Transportation allowed airline mergers that gave the merged airlines market shares of 79 and 82 percent, respectively, in their hub cities. The concept the dot used to allow mergers where there was obvious concentration was most likely
A. the good trust principle. B. contestability. C. the efficient market principle. D. the monopolistic competition principle.
Other things equal, an appreciation of the Algerian dinar in relation to the euro will act to increase Algerian demand for European goods and to decrease European demand for Algerian goods
a. True b. False Indicate whether the statement is true or false
The natural rate of unemployment
a. is a temporary low rate that cannot be maintained. b. is fixed; it cannot be altered by public policy. c. is equal to the number of persons unemployed divided by the number in the labor force. d. is the unemployment rate accompanying the economy's maximum sustainable rate of output.
Suppose the marginal propensity to consume (MPC) is 0.8 and there is a $1,000 increase in autonomous consumption. Given this information, real GDP will increase by
A. $2,500. B. $1,600. C. $2,000. D. $5,000.