Based on Okun's rule of thumb, if you forecast that the output gap will decline from -1% to -3%, the unemployment rate will: O rise by 0.5%. rise by 2%. O rise by 1%. fall by 1%.

How does unemployment in the industrialized world compare with unemployment in the United States? O A. Japan has a higher average unemployment rate than the United States and the Eurozone. O B. The Eurozone has a higher average unemployment rate than the United States. C. The Eurozone unemployment rate tends to rise when the U.S. unemployment rate falls, and tends to fall when the U.S. unemployment rate rises. D. The difference between the unemployment rates of the Eurozone and the United States decreased following the 2008-2009 recession. Click to select your answer. DII 80 000 000 F8 F7 F6 F5 F4 F3 F2 F1 * & % 7

1. Consider the classic competitive labor market. W S L DL Which of the following statements is most accurate? If the actual wage is stuck above the equilibrium wage (perhaps via labor contracts) and then increases further (with no shifts in demand and supply of labor), then the unemployment rate would increase. If the actual wage were stuck above the equilibrium wage, an increase in demand for labor (rightward shift) would make the unemployment rate go higher. If the actual wage is stuck above the equilibrium wage, the wage will tend to rise further once the stickiness of wages is gone (perhaps due to labor contracts being up for renewal. O None of the other options. ○ If the actual wage were stuck above the equilibrium wage, we would have a shortage of workers (excess demand for labor).

A government is considering introducing a new trade policy that would rescind existing free trade agreements and impose import tariffs. -what effect would this have on natural unemployment rate -whould this shift the phillips curve up or down?