Okun's law indicates that,for
A) every 1 percentage point that the actual unemployment rate exceeds the natural rate of unemployment,there is a 2% negative output gap.
B) every 1 percentage point that the actual unemployment rate exceeds the natural rate of unemployment,there is a 2% positive output gap.
C) a positive 5% output gap,there is generated a 1 percentage point increase in the natural rate of unemployment.
D) a negative 2% output gap,there is generated a 2 percentage point increase in the actual rate of unemployment.
E) every 1 percentage point that the actual unemployment rate exceeds the natural rate of unemployment,there is a 3% negative output gap.
Correct Answer:
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