Okun's Law has
◦ been proven to be completely incorrect—there isn't a negative relationship between GDP and the unemployment rate.
◦ proven to be correct over time in that as GDP increases by 3%, there has been a 1 percentage point decline in unemployment.
◦ not turned out to be a law—the relationship between changes in GDP and the unemployment rate is more complex than Okun's Law indicates.
◦ been proven false, because there is a positive relationship between changes in GDP and the unemployment rate.
