According to Okun's law, if growth in actual GDP exceeds growth in potential GDP:
A) unemployment rates will increase
B) employment will fall
C) the natural unemployment rate will increase
D) the unemployment rate will fall

Question

Quizplus · Accepted Answer

Okun's law posits that when actual GDP growth exceeds potential GDP growth, it typically results in lower unemployment rates because the economy is growing faster than its long-term sustainable rate, leading to increased demand for labor.

According to Okun's Law, If Growth in Actual GDP Exceeds