Okun's Law states that
A) supply creates its own demand.
B) as the real wage rate falls, the quantity of labor demanded increases.
C) as the unemployment rate rises, the inflation rate falls.
D) there is a relationship between the unemployment rate, real GDP, and potential GDP.
E) a higher inflation rate leads to a higher nominal interest rate.
Correct Answer:
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Q29: The short-run tradeoff between the unemployment rate
Q30: If the natural unemployment rate is 4
Q31: According to Okun's Law, for each 1
Q32: If the natural unemployment rate is 5
Q33: Moving _ the short-run Phillips curve is
Q35: According to Okun's law, if the unemployment
Q36: Suppose the unemployment rate is 8 percent
Q37: If the economy is on its short-run
Q38: Suppose the natural unemployment rate is 5
Q39: Moving upward along the aggregate supply curve,
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