In the general linear formulation of Okun's law,the value of the coefficient "h" given in the textbook as fairly summarizing U.S.data is
A)200.
B)4.
C)1.75.
D)0.5.
E)0.025

Question

Quizplus · Accepted Answer

The coefficient "h" in Okun's law, which relates changes in unemployment to changes in GDP, is often cited as approximately 0.5 for U.S. data, indicating that a 1% increase in unemployment is associated with a 2% decrease in GDP.

In the General Linear Formulation of Okun's Law,the Value of the Coefficient