Assuming That the Growth Rate of Full-Employment Output Is 3%,and

question 93

Multiple Choice

Assuming that the growth rate of full-employment output is 3%,and that the actual unemployment rate fell 2 percentage points in the last year,Okun's Law predicts that output growth rate over the past year was

• A)-1%
• B)3%
• C)5%
• D)7%

---

Definitions:

Tragedy of the Commons

A situation where individual users, acting independently according to their own self-interest, deplete or spoil shared resources, even though it is not in anyone's long-term interest.

Social Incentives

Motivations that influence an individual's behavior based on social factors, including approval, respect, or the desire to be part of a community.

Private Incentives

The personal benefits or motivations that guide individuals and businesses in making decisions, often driven by the desire for profit or personal satisfaction.

Common Resource

A resource that provides users with tangible benefits, but which is available to all members of a community or society and is susceptible to overuse, leading to depletion or degradation.