The version of Okun's law studied in Chapter 10 assumes that when real GDP grows at 2.88 percent over a year, the unemployment rate does not change. If real GDP instead grows at 1.88 percent over a year, Okun's law predicts that unemployment would:
A)increase by 0.33 percent.
B)decrease by 0.33 percent.
C)decrease by 3 percent.
D)increase by 3 percent.

Question

Quizplus · Accepted Answer

The Answer is A

The Version of Okun's Law Studied in Chapter 10 Assumes