"Okun's Law" is the ________ relation between the ________ and the difference between the actual unemployment rate and the average rate of unemployment.
A)direct;output ratio
B)observed positive;price ratio
C)implicit positive;output ratio
D)negative;output ratio

Question

Quizplus · Accepted Answer

Okun's Law is a negative relation between the output ratio (GDP) and the difference between the actual unemployment rate and the natural rate of unemployment. This means that for every percentage point increase in unemployment above the natural rate, there will be a decrease in GDP by a certain amount, known as the Okun's coefficient.

"Okun's Law" Is the ________ Relation Between the ________ and the Difference

"Okun's Law" Is the Relation Between the and the Difference