Which of the Following Is NOT a Reason Given by Economists

question 56

Multiple Choice

Which of the following is NOT a reason given by economists for the failure of Okun's law to account for the rise in unemployment during the recession of 2007-2009?

• A)increased willingness among firms to lay off workers during recessions
• B)a surge in productivity during the recession
• C)the unusual severity of the recession
• D)it does not take into account the effect of the stimulus

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Definitions:

Real-world Events

Occurrences or incidents that take place in the actual world as opposed to theoretical or artificial environments.

Plausibility

The quality of seeming reasonable or probable, often used to describe theories, arguments, or scenarios that are believable based on evidence or logic.

Adam Smith

An 18th-century Scottish economist and philosopher, best known for his theories on free market economics presented in "The Wealth of Nations."

Individuals

Single human beings considered separate from a group or society.