The "jobless recovery" in the aftermath of the 2001 recession was an apparent violation of:
A) Okun's law.
B) the Phillips curve.
C) the quantity theory.
D) the neoclassical model.
E) moral hazard.

Question

Quizplus · Accepted Answer

Okun's law states that there is a negative relationship between unemployment and GDP, meaning that as GDP rises, unemployment falls. However, during the "jobless recovery" following the 2001 recession, GDP was growing but unemployment remained high, violating Okun's law.

The "Jobless Recovery" in the Aftermath of the 2001 Recession