The relationship between the output gap and the cyclical rate of unemployment is known as
A) the Phillips curve.
B) the LM curve.
C) Murphy's law.
D) Okun's law.
Most economists think changes in which type of unemployment affects inflation?
A) frictional unemployment
B) cyclical unemployment
C) structural unemployment
D) natural rate of unemployment
Which of the following is NOT a reason given by economists for the failure of Okun's law to account for the rise in unemployment during the recession of 2007-2009?
A) increased willingness among firms to lay off workers during recessions
B) a surge in productivity during the recession
C) the unusual severity of the recession
D) It does not take into account the effect of the stimulus.
The gap between the current unemployment rate and the natural rate of unemployment is called
A) frictional unemployment.
B) structural unemployment.
C) cyclical unemployment.
D) full employment.