"Okun's Law" refers to
A)the trade-off between inflation and unemployment.
B)the relationship between real and nominal output growth.
C)minimum wage laws and the impact of price controls.
D)the relationship between the unemployment rate and the ratio of actual to natural output.

Question

Quizplus · Accepted Answer

"Okun's Law" describes the negative relationship between the unemployment rate and the difference between actual and potential GDP. As the unemployment rate rises, actual output falls below potential output. The law was first proposed by economist Arthur Okun.

"Okun's Law" Refers to