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Okun's Law States That

Question 48

Multiple Choice

Okun's Law states that


A) supply creates its own demand.
B) as the real wage rate falls, the quantity of labor demanded increases.
C) as the unemployment rate rises, the inflation rate falls.
D) there is a relationship between the unemployment rate, real GDP, and potential GDP.
E) a higher inflation rate leads to a higher nominal interest rate.

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