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Okun's Law States That for Every 1-Percentage-Point Increase in the Cyclical

Question 47

Multiple Choice

Okun's law states that for every 1-percentage-point increase in the cyclical unemployment rate, real GDP growth


A) must increase by 1 percentage point for the economy to keep from experiencing a recession.
B) decreases by about 2 percentage points.
C) declines for 1 year.
D) increases by 1 percentage point.

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