Recent research and data have shown that the relationship between output and unemployment is as stable as Okun's Law predicts.

Question

Quizplus · Accepted Answer

Okun's Law, which posits an inverse relationship between changes in the unemployment rate and real GDP growth, has been observed to have variations over time and across countries, indicating that the relationship is not as stable as originally predicted. Factors such as technological advancements, changes in labor force participation, and policy shifts can affect the stability and applicability of Okun's Law.

Recent Research and Data Have Shown That the Relationship Between