The statistical relationship between changes in real GDP and changes in the unemployment rate is called:
A)the Phillips Curve.
B)the Solow residual.
C)the Fisher effect.
D)Okun"s Law.

Question

Quizplus · Accepted Answer

The statistical relationship between changes in real GDP and changes in the unemployment rate is referred to as Okun's Law. It suggests that for every 1% increase in the unemployment rate, there is a corresponding 2% decrease in real GDP.

The Statistical Relationship Between Changes in Real GDP and Changes