If we look at the sacrifice ratios across countries, we find that
A. all industrial nations have approximately the same ratio
B. Japan has a smaller ratio than Germany, France, or the U.S.
C. Germany has a higher ratio than Italy, Australia, or the U.S.
D. no country has a ratio below 1
E. no country has a ratio above 1
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Okun's law states that one extra percentage point in unemployment causes
A. a 2 percent fall in GDP
B. a 0.5 percent fall in GDP
C. a 2 percent fall in the rate of inflation
D. a 0.5 percent fall in the rate of inflation
E. a 2 percent increase in the sacrifice ratio
The misery index is constructed by
A. adding the inflation rate and the unemployment rate
B. multiplying the inflation rate with the unemployment rate
C. dividing the inflation rate by the unemployment rate
D. adding the sacrifice ratio and the replacement rate
E. combining the sacrifice ratio with Okun's law
The misery index for the United States
A. increased steadily from 1950 to 1990, but has since declined
B. is closely but inversely related to the successes of the incumbent party
C. is closely and positively related to the successes of the incumbent party
D. is only loosely and inversely related to the successes of the incumbent party
E. none of the above
A change in the misery index
A. may indicate a change in the chances of an incumbent to get re-elected
B. may arise from a change in the inflation rate even if unemployment remains constant
C. is likely to occur if the economy experiences a positive supply shock
D. all of the above
E. none of the above
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