HW 7-1 - ECO305.02 HW #7 Multiple-choice Questions(1 pt per...

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ECO305.02 HW #7 Page 1 Multiple-choice Questions (1 pt per question) There is only one correct choice in the following questions. 1. The version of Okun's law studied in Chapter 9 assumes that, with no change in unemployment, real GDP normally grows by 3 percent over a year. If the unemployment rate rose by 2 percentage points over a year, Okun's law predicts that real GDP would: A) decrease by 1 percent. B) decrease by 2 percent. C) decrease by 3 percent. D) increase by 1 percent. 2. Most economists believe that the classical dichotomy: A) holds approximately in both the short run and the long run. B) holds approximately in the long run but not at all in the short run. C) holds approximately in the short run but not at all in the long run. D) does not hold even approximately in either the long run or the short run. 3. Along an aggregate demand curve, which of the following are held constant? A)
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HW 7-1 - ECO305.02 HW #7 Multiple-choice Questions(1 pt per...

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