Which of the Following Statements Is True According to Okun's

Multiple Choice

Which of the following statements is true according to Okun's Law?

A) The unemployment rate tends to decrease when the growth rate of real GDP is high.
B) The unemployment rate tends to increase when the rate of inflation is high.
C) The unemployment rate tends to increase when the growth rate of real GDP is high.
D) The unemployment rate is unaffected by changes in the growth rate of real GDP if there is stagflation.