According to Okun's Rule of Thumb, If Trend Growth Is

question 12

Multiple Choice

According to Okun's rule of thumb, if trend growth is 3 percent and the economy is producing at an annual rate of $7 trillion, if the rate of unemployment rises from 6 percent to 8 percent, income would be expected to:

• A)fall by $140 billion.
• B)rise by $140 billion.
• C)fall by $70 billion.
• D)rise by $70 billion

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Definitions:

Spreadsheet

A digital worksheet used for organizing, analyzing, and storing data in tabular form, often featuring calculation functionalities.

Monthly Mortgage

The scheduled monthly payment towards the principal and interest of a mortgage loan.

Sublet

The act of leasing an apartment or house from a tenant rather than directly from the landlord or property owner.

Mortgage

A loan taken out by people to purchase a house.