Which of the following best approximates Okun's law?
A) a 1 percent increase in output leads to a 2 percent decrease in unemployment
B) a 1 percent increase in output leads to a 1 percent decrease in unemployment
C) a 2 percent increase in output leads to a 4 percent increase in unemployment
D) a 2 percent increase in output leads to a 1 percent decrease in unemployment
E) none of the above
D
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The optimal size of a project is _____
a. the one that produces the highest net benefits b. the one that has the highest ratio of benefits to costs c. the one where the distance between marginal benefits and marginal costs is greatest d. a and c
Health insurance is subject to
a. Both asymmetric information problems and moral hazard problems b. Neither asymmetric information problems nor moral hazard problems c. Asymmetric information problems but not moral hazard problems d. moral hazard problems but not asymmetric information problems