The Version of Okun's Law Studied in Chapter 10 Assumes

question 33

Multiple Choice

The version of Okun's law studied in Chapter 10 assumes that with no change in unemployment, real GDP normally grows by 3 percent over a year. If the unemployment rate fell by 1 percentage point over a year, Okun's law predicts that real GDP would:

• A) decrease by 1 percent.
• B) decrease by 2 percent.
• C) increase by 4 percent.
• D) increase by 5 percent.

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Definitions:

Behavioral Intentions

Behavioral intentions are an individual's plans or inclinations to perform a particular action or behave in a certain way in the future.

Beliefs

Deeply held convictions or acceptances that something is true or exists, often forming the basis of attitudes and behaviors.

Feelings

Emotional states or reactions that are subjective and can influence an individual's mood and behavior.

Emotional Intelligence

This refers to the capability of individuals to recognize their own emotions and those of others, discern between different feelings, label them appropriately, use emotional information to guide thinking and behavior, and manage or adjust emotions to adapt to environments or achieve one's goals.