Okun's Rule of Thumb States That A

question 42

Multiple Choice

Okun's rule of thumb states that a:

• A)2 percentage point rise in the unemployment rate will tend to be associated with a 1 percent fall in output from its trend and vice versa.
• B)2 percentage point rise in the unemployment rate will tend to be associated with a 1 percent rise in output from its trend and vice versa.
• C)1 percentage point rise in the unemployment rate will tend to be associated with a 2 percent fall in output from its trend and vice versa.
• D)1 percentage point rise in the unemployment rate will tend to be associated with a 2 percent rise in output from its trend and vice versa.

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Definitions:

FIFO Retail Inventory Method

An inventory costing method that assumes items are sold in the order they were purchased or produced, first-in, first-out, applied specifically to retail inventories.

Cost-to-retail Percentage

Cost-to-retail percentage is a ratio used in retail to convert the ending inventory at retail prices back to a cost basis for financial reporting.

Net Markups

The amount by which the selling price of an item exceeds its cost, after accounting for discounts, allowances, and returns.