Chapter_9

Chapter_9 - Macroeconomics Test Yourself Chapter9 1. In the...

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Macroeconomics Test Yourself Chapter9 1. In the United States today, an unemployment rate 1% above the natural rate for one year will cause a. a 1% rise in the inflation rate. b. a 1% fall in the inflation rate. c. a 3% rise in the inflation rate. d. a 3% fall in the inflation rate. e. the inflation rate to be negative. 2. Okun's law tells us the relationship between a. the inflation rate and the unemployment rate. b. the inflation rate and the change in the unemployment rate. c. the money growth rate and the output growth rate. d. the money growth rate and the inflation rate. e. the growth rate of output and the change in the unemployment rate. 3. In the U.S., in order to prevent the unemployment rate from rising, output must grow by ____ per year. a. 1% b. 2% c. 3% d. 2.5% e. 6% 4. In the U.S., if output grows 1% faster than normal, the unemployment rate will fall by ____ percentage points. a. . 4 b. 1 c. 3 d. 5 e. 6 5. "Labor hoarding" occurs when a firm a. provides top management with too much support staff. b. keeps the most productive workers for itself, and allows the least productive to quit. c. retains more workers than needed when demand is low.
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Chapter_9 - Macroeconomics Test Yourself Chapter9 1. In the...

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