Okun's Law says that the difference between the unemployment rate ...

[ENagel]

Okun's Law says that the difference between the unemployment rate and the natural unemployment rate determines
 
  A) potential GDP.
  B) real GDP.
  C) the real interest rate.
  D) the gap between potential GDP and real GDP.
  E) the gap between the inflation rate and the unemployment rate.

Question 2

Okun's Law states that
 
  A) there is a relationship between the unemployment rate, real GDP, and potential GDP.
  B) supply creates its own demand.
  C) as the unemployment rate rises, the inflation rate falls.
  D) a higher inflation rate leads to a higher nominal interest rate.
  E) as the real wage rate falls, the quantity of labor demanded increases.

[Tonyam972]

Answer to Question 1

D

Answer to Question 2

A

[ENagel]

Excellent

[dantucker]

TYSM