ECONOMICS
INFLATION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The Okun’s law states that for every 1% increase in the unemployment, there is a:
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2% increase in GDP
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2% decrease in the GDP
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2% increase in the GNP
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2% decrease in the GNP
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Explanation:
Detailed explanation-1: -Okun’s law was coined by Arthur Okun, a Yale economist who served on President Kennedy’s council of economic advisors. Okun’s law predicts that a 1% drop in employment tends to be accompanied by a drop in GDP of around 2%. Likewise, a 1% increase in employment is associated with a 2% GDP increase.
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