According to Current Estimates of Okun's Law, If the Output

question 68

Multiple Choice

According to current estimates of Okun's law, if the output gap is 3%, the natural rate of unemployment is 4%, and the expected rate of inflation is 5%, then the unemployment rate is _____%.

• A) 3.5
• B) 3
• C) 2.5
• D) 1.5

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Definitions:

Total Revenue

The total income generated from business activities before any expenses are subtracted.

Total Cost

Represents the complete amount of expenses incurred by a business in producing goods or services.

Contribution Margin Per Unit

The selling price of a product minus its variable costs, representing the amount each unit contributes to covering fixed costs and generating profit.

Sales Revenue Per Unit

The amount of money generated from selling one unit of a product, before any expenses are subtracted.