Question

Okun’s Law estimates that for every 1 percent increase in unemployment above the natural rate, a GDP gap of ______ percent occurs.

a) one
b) two
c) three
d) four

Answer 1

correct option is b) two

Step-by-step explanation:

solution

Arthur Okun was born in 1928 and died in 1980

he was professor and economist

Okun's Law is refer to relation between increases in unemployment and decreases in GDP gross domestic product

it state when every 1 % increase increase unemployment above "natural rate " then GDP gross domestic product decrease 2 %

so here correct option is b) two