Okuns law expresses a relationship between change in the weather

of the unemployment-output relationship by examining the validity of okun's law, The empirical evidences show negative correlation, implying that Okun's law interpretation is applicable to other unforeseen variables like productivity, severe winter weather condition and . on change in the unemployment rate from one. Okun's law expresses a relationship between a change in. A. the price level . C. workers are temporarily laid off due to weather conditions. [2] The first thing to recall is that there are several versions of Okun's Law. Some are expressed in levels, some in deviations from natural levels (gaps), and with employment growth below that implied by the relationship that obtains over both The recent strength in payrolls is not simply a weather story.

The unemployment resulting from wage rigidity and job rationing is called A. The unemployment caused by unions and by the threat of unionization is an instance of A. The unemployment caused by the time that it takes to match workers and jobs is called A. The Solow growth model assumes that the production function exhibits A. The Golden Rule level of capital accumulation is defined as the level of the capital stock that achieves a steady state with the A.

macroeconomics_exam - Стр 2

The steady state level of income A. Capital is increased by 30; the labor force is increased by How much does output increase? The change in the capital stock is equal to A.

Mundell-Fleming model does not take the price level as fixed. Mundell-Fleming model assumes a small open economy. Mundell-Fleming model stresses the interaction between markets different from those in the IS-LM model. Mundell-Fleming model is not used to evaluate monetary and fiscal policy effects. The consumer price index CPI A.

Unions may cause unemployment if A. Under a system of floating exchange rates, a monetary contraction by the central bank would cause the exchange rate to A. Under a system of fixed exchange rates, an import restriction on foreign goods would cause net exports and the level of income to A.

Under a system of fixed exchange rates A. Under a system of floating exchange rates A. Using the framework of the Solow growth model, the U. Which of the following statements describes the difference between nominal and real GDP? Which of the following is not included in GDP? The value of automobile services enjoyed by car owners 1.

Which of the following is a flow variable? Your monthly consumption of hamburgers 2. Which of the following is not a stock variable? The weights given to prices are not the same. Which of the following events will cause the unemployment rate to increase?

An increase in population, with no change in the size of the labor force B. A proportionally equal increase in the labor force and the number of unemployed workers C. An increase in the labor force with no change in the number of employed workers D. An increase in the number of employed workers with no change in the number of unemployed workers 9.

The Economy: Unit 13 Economic fluctuations and unemployment

Which of the following is not a decision made by a competitive firm? The number of employees to hire B. How much to invest in machines C. What price to ask for its product D. How much to produce Which of the following is not a characteristic of the Cobb-Douglas production function?

Capital and labor receive equal fractions of income. Economic profit is zero. Factor payments are a constant fraction of income. Constant returns to scale. Which of the following operations is not considered investment? A family builds a house in which it plans to live. A car dealer stores some of this year's models for next year. An individual purchases several pieces of antique furniture.

A firm buys a computer for word processing. Which of the following is not a function of money? It is a means of production. It is a unit of account. It is a store of value. It is a medium of exchange. Which of the following is a type of open-market operation? The government sells Treasury bills to the public. The government prints money and uses it to buy army C. The Fed sells Treasury bills to the public.

The Fed buys foreign currency in the exchange market. Which component of the quantity equation is assumed constant by the quantity theory of money?

The velocity of money C. The level of income D. The price level Which of the following statements is false? If inflation is higher than the real interest rate, then the nominal interest rate must be negative. If inflation is higher than the nominal interest rate, then the real interest rate must be negative. If the nominal interest rate is higher than the real interest rate, then inflation must be positive. If the nominal interest rate is higher than inflation, then the real interest rate must be positive.

Government budget deficit and negative net capital outflow B. Government budget deficit and positive net capital outflow C. Government budget surplus and negative net capital outflow D. Government budget surplus and positive net capital outflow 13 Which of the following did not contribute to an increase in government saving in the 's?

Tax increases under presidents Bush and Clinton. Congressional restraint in increasing government spending. A shrinking trade deficit.

  • macroeconomics_exam

Rapid productivity growth When the government raises revenue by printing money, it imposes an "inflation tax" because the A. An exogenous increase in foreign demand for domestic goods B. An exogenous decrease in investment C. An increase in government purchases D.

A decrease in taxes Which of the following is not a social cost of inflation? The money that people hold loses value due to the inflation tax.

People hold smaller real balances and so have to make more frequent trips to the bank. Firms have to spend money to change prices more frequently.

LM stands for labor market and job case of Nigeria; Sodipe et al, find that a separation is calculated as the flow of people long run inverse relationship exists between from employment to unemployment. That is, Y is the sum of a Albers propose herein that either 7-year deterministic linear trend and a stationary periods, in a recurring circuit of years, are an process.

Since unemployment et al, It is called the error term or smaller effect on unemployment rate than it is disturbance in the relationship, represents in the US. Wen and Chen are of the view factors other than X that affect Y.

We can the change in X.

Okun’s Law, the Jobless Recovery, and Unexpectedly Fast Net Job Creation

This margin plays a quantitatively important role in explaining the To receive empirical verification, all theories cyclicality of labor productivity. Variations in must eventually be reduced to a testable unemployment would be mostly absorbed by hypothesis Engle, The next step of the variations in informal employment if formal analysis consists of performing unit root tests to employment is heavily regulated.

Islas and validate the stationarity of our variables, using Cortez postulated that the existence of a the Augmented Dickey-Fuller ADF and large informal labor market closely interrelated Phillips-Perron P-P tests for a robust analysis. Unit root analysis Median 0. Thus, the reject the null hypotheses that the residuals are unit root estimation shows that the variables of normally distributed.

Lack of symmetry unemployment and GDP growth rate are skewness and pointiness kurtosis are two stationary at level. This study went further to main ways in which a distribution can deviate find the existence of a long run relationship from normal Ghasemi and Zahediasl, The values are still less than 0.

Thus, since the results indicated two cointegrating equations at decision to use the nonparametric tests or not is the 0. This study eigenvalue test, denoting rejection of the will avoid concluding on a single normality test hypothesis at the 0. Unrestricted Cointegration Rank Test assumption.

Press Conference with Chairman of the FOMC, Ben S. Bernanke

It is reasonable to conduct a normal distribution test as presented in table 4. If the errors are Table 5: Ordinary Least Squares normally distributed as is the case in figure 3, Dependent Variable: Least Squares then that means there are no data point on either Date: Hence, the Variable Coefficient Std.

This is the rate of growth that keeps X We can also write this R-squared 0. For these Adjusted R2 0. The value 8 Skewness 0. As output increases by 1 point, the Probability 0.

Normality of the error distribution point, as supposed to a 0. The R-squared R2 at 0. The associated F- Equation: EQ probability is 0.