Which of the Following Statements Is Likely to Be True

Multiple Choice

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

A) The unemployment rate remains constant when the growth rate of real GDP is 0 percent.
B) The unemployment rate remains constant when the growth rate of real GDP is 2 percent.
C) The unemployment rate declines when the growth rate of real GDP is below 2 percent.
D) The unemployment rate is zero when the growth rate of real GDP is exactly 1 percent.