Okun's law is less than a 1:1 ratio because some:

Question

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Okun's law states that for every 1% increase in GDP, the unemployment rate will decrease by less than 1%. This is because employers have other options, such as changing the working hours of current employees or hiring part-time workers, before resorting to layoffs. Option B correctly identifies one of these alternative options, showing that employers do not always reduce their workforce in response to changes in demand.

Okun's Law Is Less Than a 1:1 Ratio Because Some