79

79. Okun's law is the relationship between real GDP and the A) negative; unemployment rate B) positive; inflation rate C) positive; unemployment rate D) negative; inflation rate 80. Name one reason for wage rigidity: A) low productivity B) high labor supply elasticity C) high productivity D) minimum wage laws 81. All of the following are reasons for frictional unemployment except: A) geographic mobility takes time. B) workers have different preferences and abilities. C) unemployed workers accept the first job offer that they receive. D) the flow of information is imperfect. 82. Which of the following will shift the aggregate supply curve up to the left? A) a decrease in expenditure B) an increase in expenditure C) an increase in input costs. D) a decrease in input costs 83. A decrease in the price level, holding nominal money supply constant, will shift the LM curve: A) downward and to the right. B) upward and to the left. C) upward and to the right. D) downward and to the left. 84. The basic aggregate supply equation implies that output exceeds natural output when the price level is: A) high B) low. C) less than the expected price level. D) greater than the expected price level.