The specific form of Okun's law relates
A) deviations from the natural level of employment to deviations from potential output.
B) deviations from the natural level of the unemployment rate to deviations from the potential inflation rate.
C) deviations from the natural rate of unemployment to deviations from potential output.
D) deviations from the natural interest to deviations from the natural exchange rate.

Question

Quizplus · Accepted Answer

Okun's law describes the relationship between unemployment and economic output, specifically how deviations from the natural rate of unemployment are related to deviations from potential output.

The Specific Form of Okun's Law Relates