Okun's Law Finds That Output Gaps and Unemployment Rates Are

question 59

Multiple Choice

Okun's law finds that output gaps and unemployment rates are _____ related in a _____ ratio.

• A)positively; one-to-one
• B)negatively; less than one-to-one
• C)positively; less than one-to-one
• D)negatively; one-to-one

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Definitions:

After-tax Income

The amount of income left after all federal, state, and withholding taxes have been deducted.

Tax Rate

The rate at which taxes are levied on the income of a person or company.

FIFO

"First-In, First-Out," an inventory valuation method assuming goods are sold in the order they are acquired, affecting the cost of goods sold and ending inventory.

Average-cost Method

An inventory costing method that calculates the cost of goods sold and ending inventory based on the average cost of all similar items available during the period.