Question

1. Okun's law is the ______ relationship between real GDP and the ______. a. negative; unemployment rate b. negative; inflation rate c. positive; unemployment rate d. positive; inflation rate

Answer 1

Answer:

a. negative; unemployment rate

Explanation:

Okun's law pertains to the relationship between the U.S. economy's unemployment rate and its gross national product (GNP). It states that when unemployment falls by 1%, GNP rises by 3%.  Therefore their relationship is negative.