According to ________,there is a close connection between unemployment and the growth rate of real GDP.
A) Engel's Law
B) Say's Law
C) Okun's Law
D) Ricardo's Law

Question

Quizplus · Accepted Answer

Okun's Law states that there is a negative relationship between unemployment and the growth rate of real GDP. Specifically, for every 1% increase in the unemployment rate, there is a corresponding 2% decrease in the growth rate of real GDP. This relationship has been observed across various countries and time periods, and is used by economists to understand the impact of economic policies on unemployment and growth. Engel's Law is related to the relationship between income and spending on food, while Say's Law and Ricardo's Law focus on principles of supply and demand in the economy.

According to ________,There Is a Close Connection Between Unemployment and the Growth