According to Okun's Law,when Cyclical Unemployment Increases from 2 to 3%,the

question 71

Multiple Choice

According to Okun's law,when cyclical unemployment increases from 2 to 3%,the output gap increases from ________%.

• A) - 4 to - 6
• B) - 2 to - 3
• C) 0 to 1
• D) 2 to 3
• E) 4 to 6

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Definitions:

Payoff Table

A decision-making tool that summarizes the outcomes of different decisions, given various states of nature, in a tabular format.

Optimal Alternative

The best possible choice among various options under consideration, often based on specific criteria or outcomes.

Expected Opportunity Loss

A statistical concept that calculates the expected amount of loss for not choosing the best alternative.

Gross Profits

The financial gain obtained after subtracting the cost of goods sold from total revenue, indicating the efficiency of a company’s production process.