Okun's Law Indicates That For

Multiple Choice

Okun's law indicates that for:

A) every 1 percent that the actual unemployment rate exceeds the natural unemployment rate, there is a generated 2 percent GDP gap.
B) every 1 percent that the actual unemployment rate exceeds the natural unemployment rate, there is a generated 5 percent GDP gap.
C) a 5 percent GDP gap, there is a generated 1 percent increase in the natural unemployment rate.
D) a 2 percent GDP gap, there is a generated 2 percent increase in the actual unemployment rate.