If Okun's Law Holds True, Then a 9% Increase in GDP

question 189

Multiple Choice

If Okun's Law holds true, then a 9% increase in GDP would lead to a ________ percentage point decrease in the unemployment rate.

• A) 1
• B) 2
• C) 3
• D) 6

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Definitions:

Other Expenses

Costs not directly related to the production of goods or services, such as administrative and marketing expenses.

Fixed Cost

Costs that do not change with the level of production or sales volume, remaining constant regardless of business activities.

Planning Budget

An initial budget created using the assumptions of a particular level of activity to guide a company's financial decisions.

Net Operating Income

A financial metric that measures a company's profitability from its core business operations, excluding the effects of financing and taxes.