Author Question: Which of the following best approximates Okun's law? A) a 1 percent increase in output leads to a ... (Read 32 times)

biggirl4568 · **on:** Jun 30, 2018

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

Question 2

If the MPC is 0.6, then a 50-unit rise in taxes and a 50-unit rise in government spending will shift the IS curve

a. to the right by 50 units.
b. to the right by 75 units.
c. to the left by 125 units.
d. to the left by 75 units.