Assuming that the growth rate of full-employment output is 3%, and that the actual unemployment rate fell 2 percentage points in the last year, Okun's Law predicts that output growth rate over the past year was
A. 5%.
B. 7%.
C. 3%.
D. -1%.
Answer: B
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Which of the following is an assumption of the median voter model?
a. Voters are assumed to have heterogeneous preferences. b. Voters are assumed to be able to place all possible election outcomes within a one-dimensional continuum. c. Voters are assumed to have homogenous preferences. d. Voters are assumed to be able to compare current election outcomes with past election outcome with perfect recall.
There are large differences in the standard of living
a. across countries, but not within countries. b. within countries over time, but not across countries. c. across countries and within countries over time. d. across countries, but not in technology or healthcare.
In a fixed exchange rate regime, which of the following policies could lead to a greater trade deficit and leave aggregate demand constant?
A) Devalue the currency. B) Increase government spending. C) Decrease government spending. D) Decrease government spending and devalue the currency. E) Increase government spending and revalue the currency.
The concepts of specialization and gains from trade can be applied to:
A. consumer decisions. B. international trade. C. household decisions. D. why globalization has expanded recently.