Okun's law states that if the unemployment rate increases by 1percentage point, then
A. real GDP will fall by about 2 percent
B. real GDP will also fall by about 1 percent
C. real GDP will fall by about 0.5 percent
D. the rate of inflation will decline by about 2 percent
E. the rate of inflation will decline by about 0.5 percent
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The fact that an increase in the unemployment rate by 1 percent will lead to a roughly 2 percent loss in output is referred to as
A. the sacrifice ratio
B. the replacement ratio
C. the misery index
D. the Beveridge relationship
E. Okun’s law
Concerns about high unemployment
A. are not justified since most people find new employment in less than 3 months
B. are irrational since the government routinely provides unemployment benefits for more than one year
C. arise from its high costs in terms of lost output
D. stem from the fact that the costs of unemployment tend to be unevenly distributed
E. both C) and D)
Based on what we know about the unemployment rates of adult males and females over the last five decades, which of the following is true?
A. the female unemployment rate was consistently higher than the male rate
B. the male unemployment rate was consistently higher than the female rate
C. after 1980, males experienced much more drastic changes in unemployment than females
D. the unemployment rate for males never exceeded 10 percent
E. none of the above
An employed person is defined as a person who during a reference week
A. had a job but was not working due to family or personal reasons
B. had a job but was not working due to maternity or paternity leave
C. did at least one hour of work as a paid employee
D. all of the above
E. none of the above
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