If ω 2 the okuns law states that a for every 1 that

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Chapter 16 / Exercise 20
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16.If ω = 2, the Okun’s law states that:a.For every 1% that output it above potential, UE will fall by 0.5%b.For every 1% that output is below potential, UW will fall by 0.5%c.For every additional 1% that UE is above the natural rate, output is 2% below potentiald.For every additional 1% that UE is above the natural rate, output is 2% above potentiale.Both a and c
17.The classical AS curve:
18.Which of the statements is false regarding the Keynesian aggregate supply curve:
19.According to the expectations-augmented Phillips curve, when the UE rate is below the naturalrate of UE:
20.The rational expectations model suggests that:a.Monetary policy is only effective when it is anticipatedb.People make systematic errors in formulating inflation expectationsc.People formulate expectations based on all available informationd.Both a and ce.All of the above
21.If money is neutral in the long-run, but not in the short/medium run, a monetary expansion:
22.Which of the following is an example of adverse supply shocks:
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Macroeconomics for Today
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Chapter 16 / Exercise 20
Macroeconomics for Today
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