The Proposition That Each Extra Percentage Point of Cyclical Unemployment

question 115

Multiple Choice

The proposition that each extra percentage point of cyclical unemployment is associated with about a 2 percentage point increase in the output gap, measured in relation to potential output, is known as:

• A) the recessionary gap.
• B) the expansionary gap.
• C) the Fisher effect.
• D) Okun's law.

---

Definitions:

Accountability

The duty of a person or entity to justify their actions, take responsibility for them, and reveal the outcomes openly.

Sharing Life

The act of sharing aspects of one's life with others, fostering connections, mutual understanding, and support within relationships or communities.

Intimacy

A close, familiar, and usually affectionate or loving personal relationship with another person or group.

Postformal Thought

A period following Piaget’s formal operational stage that includes creativity, intuition, and the ability to consider information related to other ideas; postformal thinkers can comprehend and balance arguments created by both logic and emotion.