According to Okun's law, each extra percentage point of ________ unemployment is associated with a ________ widening of a negative output gap, measured in relation to potential output.
A. frictional; 0.5 percent
B. cyclical; 2 percent
C. frictional; 2 percent
D. cyclical; 0.5 percent
Answer: B
Economics
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A firm has two plants, one in the United States and one in Mexico, and it cannot change the size of the plants or the amount of capital equipment. The wage in Mexico is $5. The wage in the U.S. is $20
Given current employment, the marginal product of the last worker in Mexico is 100, and the marginal product of the last worker in the U.S. is 500. a. Is the firm maximizing output relative to its labor cost? Show how you know. b. If it is not, what should the firm do?
Economics
Which of the following is a stock variable:
a. Income b. Money supply c. Investment d. Profits
Economics