Okun's law suggests that a _____ increase in a positive output gap _____ the unemployment rate by _____.
A) 1%; increases; 0.5%
B) 1%; increases; 0.5%.
C) 1%; decreases; 0.5%
D) 1%; decreases; 0.5%.
E) 0.5%; increases; 1%
F) 0.5%; increases; 1%.
G) 0.5%; decreases; 1%.
H) 0.5%; decreases; 1%
Correct Answer:
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