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Q36) A law/ theory which predicts that if GDP grows at around 3% per year,the job rates will be unchanged and if it grows faster unemployment rate will fall is
Q36) A law/ theory which predicts that if GDP grows at around 3% per year,the job rates will be unchanged and if it grows faster unemployment rate will fall is
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Solution
The correct option is A a) Okuns law
Ans 36: A
Explanation: In economics, Okun's law (named after Arthur Melvin Okun, who proposed the relationship in 1962[1]) is an empirically
observed relationship between unemployment and losses in a country's production. The "gap version" states that for every 1%
increase in the unemployment rate, a country's GDP will be roughly an additional 2% lower than its potential GDP. The "difference
version"[2] describes the relationship between quarterly changes in unemployment and quarterly changes in real GDP
a) Okuns law
Ans 36: A
Explanation: In economics, Okun's law (named after Arthur Melvin Okun, who proposed the relationship in 1962[1]) is an empirically
observed relationship between unemployment and losses in a country's production. The "gap version" states that for every 1%
increase in the unemployment rate, a country's GDP will be roughly an additional 2% lower than its potential GDP. The "difference
version"[2] describes the relationship between quarterly changes in unemployment and quarterly changes in real GDP
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