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Okun's Law States That If the Unemployment Rate Increases by 1percentage

Question 44

Multiple Choice

Okun's law states that if the unemployment rate increases by 1percentage point, then


A) real GDP will fall by about 2 percent
B) real GDP will also fall by about 1 percent
C) real GDP will fall by about 0.5 percent
D) the rate of inflation will decline by about 2 percent
E) the rate of inflation will decline by about 0.5 percent

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