Which of the Following Pairs of Variables Are Explained by the Okun's

question 54

Multiple Choice

Which of the following pairs of variables are explained by the Okun's law?

• A) The money growth rate and the inflation rate.
• B) The money growth rate and the change in output growth rate.
• C) The inflation rate and the unemployment rate.
• D) The growth rate of output and the change in the unemployment rate.
• E) The inflation rate and the change in the unemployment rate.

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Definitions:

Return

The profit or loss derived from an investment over a particular period, often expressed as a percentage of the investment's initial cost.

Inflation

The velocity of rise in the aggregate pricing of goods and services, reducing the power of the dollar.

Dividends

Regular payments declared by a company's board of directors and given to its shareholders from the company's earnings.