The Relationship Between the Output Gap and the Cyclical Rate

question 9

Multiple Choice

The relationship between the output gap and the cyclical rate of unemployment is known as

• A) the Phillips curve.
• B) the LM curve.
• C) Murphy's law.
• D) Okun's law.

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Definitions:

Tax Revenue

The income that is collected by the government through various forms of taxes from individuals and businesses.

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An organization, often a group of people, with the authority to govern a country or state.

Tax

Compulsory financial charges or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund government spending and various public expenditures.

Price Ceiling

A Price Ceiling is a government-imposed limit on how high a price can be charged for a product, intended to protect consumers from exorbitant prices.