Which of the following is NOT a reason given by economists for the failure of Okun's law to account for the rise in unemployment during the recession of 2007-2009?
A)increased willingness among firms to lay off workers during recessions
B)a surge in productivity during the recession
C)the unusual severity of the recession
D)it does not take into account the effect of the stimulus

Question

Quizplus · Accepted Answer

Okun's law relates unemployment to GDP growth and does not directly account for fiscal policy measures like stimulus, which is why option D is not a reason for its failure to account for unemployment changes during the recession.

Which of the Following Is NOT a Reason Given by Economists