The Idea That a 1% Increase in the Output Gap

question 139

Multiple Choice

The idea that a 1% increase in the output gap will decrease the unemployment rate by 0.5% is known as _____ law.

• A) Okun's
• B) Phillips's
• C) Greenspan's
• D) Keynes's

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Definitions:

Year-end Balance Sheets

Financial statements detailing a company's assets, liabilities, and equity at the end of a fiscal year.

Retained Earnings

Profits that a company retains rather than distributes to its shareholders as dividends, often used for reinvestment.

Depreciation Expense

The systematic allocation of the cost of a tangible asset over its useful life, reflecting the loss of value over time.

Net Income

The total profit of a company after all expenses and taxes have been deducted from total revenue.