According to Okun's Law, When the Output Gap Is Positive

question 74

Multiple Choice

According to Okun's law, when the output gap is positive, cyclical unemployment:

• A)equals structural unemployment.
• B)equals frictional unemployment.
• C)equals zero.
• D)is negative.

---

Definitions:

AGI Deduction

Adjustments made to gross income for purposes of calculating taxable income.

Pre-Move House Hunting

Expenses incurred while searching for a new residence before relocating, which can sometimes be deductible for tax purposes.

Moving Expense

Costs associated with relocating for a job or business, which were deductible under certain conditions pre-2018 Tax Cuts and Jobs Act.

High Deductible Health Plan

A health insurance plan with lower premiums and higher deductibles than traditional health plans.