Okun's Law states that the ________ decreases about 1 percentage point for every 3% increase in ________.

Question

Quizplus · Accepted Answer

Okun's Law states that there is an inverse relationship between the unemployment rate and GDP. Specifically, for every 1% increase in the unemployment rate, there is usually a 2% decrease in GDP. Therefore, choice C is the correct answer as it highlights the relationship between these two variables.

Okun's Law States That the ________ Decreases About 1 Percentage