Question : 31) According to Okun’s Law, for each 1 percentage point : 1240618

 

 

31) According to Okun’s Law, for each 1 percentage point that the unemployment rate is above the natural unemployment rate, then

A) the inflation rate is less than the expected inflation rate by 1 percentage point.

B) real GDP is below potential GDP by 2 percent.

C) real GDP is above potential GDP by 2 percent.

D) the inflation rate is greater than the expected inflation rate by 2 percentage points.

E) the real interest rate is below the natural real interest rate by 1 percentage point.

 

32) Okun’s Law states that for each percentage point that the unemployment rate is above its natural rate, there is a ________ percent gap between real GDP and potential GDP.

A) 2

B) 4

C) 6

D) 8

E) random

 

33) If the natural unemployment rate is 5 percent and the actual unemployment is 3 percent, then Okun’s Law concludes that real GDP is

A) 2 percent greater than potential GDP.

B) 4 percent greater than potential GDP.

C) 2 percent less than potential GDP.

D) 4 percent less than potential GDP.

E) 3 percent greater than potential GDP.

34) According to Okun’s Law, if the unemployment rate is 7 percent and the natural unemployment rate is 5 percent, potential GDP is ________ than real GDP.

A) 2 percent less

B) 4 percent less

C) 7 percent less

D) 2 percent greater

E) 4 percent greater

 

35) Suppose the natural unemployment rate is 5 percent, the actual unemployment rate is 6 percent, and potential GDP is $5,000 billion. Based on Okun’s Law, real GDP is equal to ________ billion.

A) $5,000

B) $5,100

C) $4,900

D) $4,000

E) $5,900

 

36) If the natural unemployment rate is 5 percent, the actual unemployment rate is 8 percent, and potential GDP is $15 trillion, then according to Okun’s Law, real GDP is

A) $14.25 trillion.

B) $14.1 trillion.

C) $13.8 trillion.

D) $13.05 trillion.

E) $15.9 trillion.

37) If the natural unemployment rate is 4 percent and potential GDP is $30 billion, then according to Okun’s Law, when the unemployment rate falls to 3 percent, real GDP

A) decreases to $29.4 billion.

B) remains constant at $30 billion.

C) first decreases by 4 percent and then increases by 4 percent.

D) increases to $30.6 billion.

E) increases to $60 billion.

 

38) Suppose the unemployment rate is 8 percent and the natural unemployment rate is 6 percent. If potential GDP is $8 trillion, using Okun’s Law what does real GDP equal?

A) $7.68 trillion

B) $8.32 trillion

C) $7.84 trillion

D) $8.16 trillion

E) $8.00 trillion

 

39) According to Okun’s Law, when the natural employment rate is 6 percent and potential GDP is $10 trillion, then when actual employment is 7 percent, real GDP is

A) $10.2 trillion.

B) $9.8 trillion.

C) $9.9 trillion.

D) $10.1 trillion.

E) $8 trillion.

40) 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) $10.2 trillion.

B) $9.8 trillion.

C) $9.9 trillion.

D) $10.1 trillion.

E) $8 trillion.

 

 

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more