Okun's law shows the ________ relationship between ________ and ________.
A) negative; the unemployment gap; economic fluctuations
B) positive; the unemployment gap; economic fluctuations
C) negative; the unemployment gap; inflation
D) positive; the unemployment gap; inflation
E) negative; inflation; economic fluctuations

Question

Quizplus · Accepted Answer

Okun's law demonstrates a negative relationship between the unemployment gap (the difference between actual and natural rates of unemployment) and economic fluctuations (measured as changes in real GDP). When the economy grows faster than its potential (positive economic fluctuations), the unemployment gap decreases, and vice versa.

Okun's Law Shows the ________ Relationship Between ________ and ________

Okun's Law Shows the Relationship Between and