Although the relationship between output and the unemployment rate is not as simple as Okun's Law represents it to be, it is true that
A. a 1% increase in output tends to correspond to a greater than 1% decrease in the unemployment rate.
B. a 1% increase in output will have no effect on the unemployment rate.
C. a 1% increase in output tends to correspond to a less than 1% decrease in the unemployment rate.
D. a 1% increase in output tends to correspond to a 1% decrease in the unemployment rate.
Answer: C
Economics
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What will be an ideal response?
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