Although the Relationship Between Output and the Unemployment Rate Is

Multiple Choice

Although the relationship between output and the unemployment rate is not as simple as Okun's Law represents it to be, it is true that

A) a 1% increase in output tends to correspond to a greater than 1% decrease in the unemployment rate.
B) a 1% increase in output tends to correspond to a less than 1% decrease in the unemployment rate.
C) a 1% increase in output tends to correspond to a 1% decrease in the unemployment rate.
D) a 1% increase in output will have no effect on the unemployment rate.