Multiple Choice
Okun's Law has
A) been proven to be completely incorrect-there isn't a negative relationship between GDP and the unemployment rate.
B) proven to be correct over time in that as GDP increases by 3%, there has been a 1 percentage point decline in unemployment.
C) not turned out to be a law-the relationship between changes in GDP and the unemployment rate is more complex than Okun's Law indicates.
D) been proven false, because there is a positive relationship between changes in GDP and the unemployment rate.
Correct Answer:
Verified
Correct Answer:
Verified
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