Question 1
Okun's Law states that the ________ decreases about 1 percentage point for every 3% increase in ________.
◦ inflation rate; the unemployment rate
◦ GDP; the inflation rate
◦ unemployment rate; GDP
◦ inflation rate; GDP
Question 2
According to Okun's Law, if GDP increased by 12%, the unemployment rate would decrease by
◦ 2 percentage point.
◦ 3 percentage points.
◦ 4 percentage points.
◦ 6 percentage points.