According to Okun's law,if real GDP rises by about 2 percent in one year's time,the unemployment rate will rise by about______ percent.
A) 5
B) 4
C) 2
D) 1

Question

Quizplus · Accepted Answer

Okun's law suggests that for every 1% increase in real GDP above the trend growth rate, the unemployment rate tends to decrease by about 0.5%. Therefore, a 2% increase in GDP would typically lead to a 1% decrease in the unemployment rate, not an increase.

According to Okun's Law,if Real GDP Rises by About 2