According to Okuns Law when cyclical unemployment decreases by one percentage

# According to okuns law when cyclical unemployment

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83.According to Okun's Law, when cyclical unemployment decreases by one percentage point, the recessionary gap _____ by _____ percentage point(s), measured in relation to potential output. A. increases; one B. increases; two C. decreases; one D.decreases; two AACSB: Analytical Skills Blooms: Knowledge Frank - Chapter 20 #83 Learning Objective: 20- 05 Use Okun’s law to analyze the relationship between the output gap and cyclical unemployment. Section: Output Gaps and Cyclical Unemployment

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84.According to Okun's Law, when cyclical unemployment changes from -4% to -2%, the output gap changes from _____ measured relative to potential output. AACSB: Analytical Skills Blooms: Application Frank - Chapter 20 #84 Learning Objective: 20- 05 Use Okun’s law to analyze the relationship between the output gap and cyclical unemployment. Section: Output Gaps and Cyclical Unemployment
85.According to Okun's Law, when cyclical unemployment changes from -6% to -4%, the output gap changes from _____ measured relative to potential output. AACSB: Analytical Skills Blooms: Application Frank - Chapter 20 #85 Learning Objective: 20- 05 Use Okun’s law to analyze the relationship between the output gap and cyclical unemployment. Section: Output Gaps and Cyclical Unemployment

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86.In Macroland potential output equals \$100 trillion and the natural rate of unemployment is 4 percent. If the actual unemployment rate is 6 percent, then the output gap equals: AACSB: Analytical Skills Blooms: Application Frank - Chapter 20 #86 Learning Objective: 20- 05 Use Okun’s law to analyze the relationship between the output gap and cyclical unemployment. Section: Output Gaps and Cyclical Unemployment
87.In Macroland potential output equals \$100 trillion and the natural rate of unemployment is 5 percent. If the actual unemployment rate is 8 percent, then the output gap equals: A. -\$3 trillion.B. -\$5 trillion.C.-\$6 trillion.D. -\$8 trillion. AACSB: Analytical Skills Blooms: Application Frank - Chapter 20 #87 Learning Objective: 20- 05 Use Okun’s law to analyze the relationship between the output gap and cyclical unemployment. Section: Output Gaps and Cyclical Unemployment

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88.In Macroland potential output equals \$100 trillion and the natural rate of unemployment is 5 percent. If the actual unemployment rate is 3 percent, then the output gap equals: AACSB: Analytical Skills Blooms: Application Frank - Chapter 20 #88 Learning Objective: 20- 05 Use Okun’s law to analyze the relationship between the output gap and cyclical unemployment. Section: Output Gaps and Cyclical Unemployment

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• Fall '14
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