Author Question: According to Okun's law, an increase in which of the following is associated with an increase in ... (Read 26 times)

SAVANNAHHOOPER23 · **on:** Jun 30, 2018

According to Okun's law, an increase in which of the following is associated with an increase in unemployment?

A) inflation
B) output
C) expected inflation
D) autonomous expenditure
E) potential output

Question 2

The assumption that current-period labor supply is positively related to the current-period real wage is justified as long as the

A) income effect dominates the substitution effect in the short run.
B) income effect dominates the substitution effect in the long run.
C) substitution effect dominates the income effect in the short run.
D) substitution effect dominates the income effect in the long run.