Multiple Choice
Okun's law indicates that for
A) every 1 percent that the actual unemployment rate exceeds the natural unemployment rate, a 2 percent GDP gap is generated.
B) every 1 percent that the actual unemployment rate exceeds the natural unemployment rate, a 5 percent GDP gap is generated.
C) a 5 percent GDP gap, a 1 percent increase in the natural unemployment rate is generated.
D) a 2 percent GDP gap, a 2 percent increase in the actual unemployment rate is generated.
Correct Answer:
Verified
Correct Answer:
Verified
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