The Version of Okun's Law Studied in Chapter 10 Assumes

question 56

Multiple Choice

The version of Okun's law studied in Chapter 10 assumes that when real GDP grows at 2.88 percent over a year, the unemployment rate does not change. If real GDP instead grows at 1.88 percent over a year, Okun's law predicts that unemployment would:

• A)increase by 0.33 percent.
• B)decrease by 0.33 percent.
• C)decrease by 3 percent.
• D)increase by 3 percent.

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Definitions:

Representative

Someone or something that serves as a typical example of a group, class, or quality.

Experimenter Effects

Unintended influences that the experimenter's presence or actions may have on the results of an experiment.

Single-blind Studies

Experimental studies in which the participants do not know which experimental group they belong to (e.g., control or treatment), but the researchers do.

Dependent Variable

In an experiment, it is the variable that is tested and measured, expected to change as a result of manipulations of the independent variable.