Question

Okun's law a. quantifies the relationship between nominal and real incomes.b. indicates the number of years it will take for a constant rate of inflation to double the price level. c. measures the trade-off between the rate of inflation and the rate of unemployment. d. shows the relationship between the unemployment rate and the size of the negative GDP gap.

Answer 1

Answer:

. d. shows the relationship between the unemployment rate and the size of the negative GDP gap.

Explanation:

Okun's law examines the relationship between unemployment rate and the gross national product of the US.

When unemployment falls by 1%, GNP rises by 3%

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