According to Okun's Law, when the natural employment rate is 6 percent and potential GDP is $10 trillion, then when actual employment is 5 percent, real GDP is
A) $10.1 trillion. B) $9.9 trillion. C) $9.8 trillion. D) $10.2 trillion. E) $8 trillion.
D
You might also like to view...
An interest rate swap involving the exchange of floating-rate obligations for fixed-rate obligations is known as
A) swaption. B) swap option. C) forward swaps. D) plain vanilla.
In long-run equilibrium, a firm in perfect competition has no economic profit.
Answer the following statement true (T) or false (F)
If the price level is falling, all of the following are true except
A. Businesses are reluctant to borrow money. B. Purchasing power increases. C. Lenders are better off. D. Borrowers are not affected.
An example of a negative externality is the:
A. cost you bear when your neighbor has a noisy party and does not compensate you for your discomfort. B. decrease in income to farmers that results from a drought. C. benefit you receive without paying when your neighbor installs a smoke detector. D. decrease in your real income that results when photographic equipment you purchase increases in price because of increased demand by others for these items.