Which of the following is NOT a reason given by economists for the failure of Okun's law to account for the rise in unemployment during the recession of 2007-2009?
A) increased willingness among firms to lay off workers during recessions
B) a surge in productivity during the recession
C) the unusual severity of the recession
D) It does not take into account the effect of the stimulus.

Question

Quizplus · Accepted Answer

The question is asking for the reason NOT given by economists for the failure of Okun's law to account for the rise in unemployment during the recession of 2007-2009. Option D suggests that Okun's law does not take into account the effect of the stimulus, which is a valid reason economists have suggested. Therefore, the correct answer must be D. The other options, namely A, B, and C, are all reasons economists have given for the failure of Okun's law to account for the rise in unemployment during the recession of 2007-2009.

Which of the Following Is NOT a Reason Given by Economists