Author Question: If the natural unemployment rate is 4 percent and potential GDP is 30 billion, then according to ... (Read 42 times)

james9437

  • Hero Member
  • *****
  • Posts: 568
If the natural unemployment rate is 4 percent and potential GDP is 30 billion, then according to Okun's Law, when the unemployment rate falls to 3 percent, real GDP
 
  A) decreases to 29.4 billion.
  B) first decreases by 4 percent and then increases by 4 percent.
  C) increases to 60 billion.
  D) increases to 30.6 billion.
  E) remains constant at 30 billion.

Question 2

If the real interest rate falls, other things being the same, the quantity of loanable funds demanded ________ and the quantity of loanable funds supplied ________.
 
  A) does not change; decreases
  B) increases; increases
  C) increases; decreases
  D) decreases; does not change
  E) decreases; decreases



Ashley I

  • Sr. Member
  • ****
  • Posts: 344
Answer to Question 1

D

Answer to Question 2

C



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Signs of depression include feeling sad most of the time for 2 weeks or longer; loss of interest in things normally enjoyed; lack of energy; sleep and appetite disturbances; weight changes; feelings of hopelessness, helplessness, or worthlessness; an inability to make decisions; and thoughts of death and suicide.

Did you know?

Immunoglobulin injections may give short-term protection against, or reduce severity of certain diseases. They help people who have an inherited problem making their own antibodies, or those who are having certain types of cancer treatments.

Did you know?

The highest suicide rate in the United States is among people ages 65 years and older. Almost 15% of people in this age group commit suicide every year.

Did you know?

Thyroid conditions may make getting pregnant impossible.

Did you know?

There are approximately 3 million unintended pregnancies in the United States each year.

For a complete list of videos, visit our video library