According to Okun's law,an increase in which of the following is associated with an increase in unemployment?
A)inflation
B)output
C)expected inflation
D)autonomous expenditure
E)potential output

Question

Quizplus · Accepted Answer

Okun's law suggests that when actual output is below potential output, unemployment rises. An increase in potential output, without a corresponding increase in actual output, can lead to higher unemployment.

According to Okun's Law,an Increase in Which of the Following