As a result of a downturn in the economy,a firm reduces workers' hours but does not fire workers.Following Okun's law,this is one reason:
A) the relationship between the output gap and the unemployment rate is positive.
B) the relationship between the output gap and the unemployment rate is negative and less than a one-to-one relationship.
C) a negative output gap is associated with an unusually low unemployment rate.
D) a positive output gap is associated with an unusually high unemployment rate.
Correct Answer:
Verified
Q207: If government decides to print money to
Q208: Suppose that an economy's aggregate price level
Q213: Disinflation:
A) entails eliminating inflation in an economy.
B)
Q214: A government with a large deficit will
Q216: Government's right to print money to finance
Q222: When an economy has debt deflation:
A)aggregate demand
Q228: An economy's short-run Phillips curve will shift
Q232: When inflation is high:
A)people will increase their
Q235: During an inflationary gap:
A)the unemployment rate is
Q238: The short-run Phillips curve:
A)depicts the positive relationship
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents