For Every 1 Percent That the Actual Unemployment Rate Exceeds

question 154

Multiple Choice

For every 1 percent that the actual unemployment rate exceeds the natural rate, there is generated a 2 percent GDP gap.This is a statement of:

• A)Stratford's law.
• B)Okun's law.
• C)the law of nominal incomes.
• D)the rule of 70.

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Definitions:

Direct Labor Rate

The cost per hour for direct labor applied to the production of goods or services.

Direct Labor-Hours

The sum of hours spent by workers directly engaged in producing a good or delivering a service.

Schedule of Expected Cash Collections

A financial report that outlines the anticipated inflow of cash from receivables or other income sources over a specific time period.

Merchandise Purchases Budget

A financial plan that estimates the cost of goods a retail company needs to purchase over a specific period to meet expected sales.