If Okun's Law Holds True, Then a 9% Increase in GDP

question 189

Multiple Choice

If Okun's Law holds true, then a 9% increase in GDP would lead to a ________ percentage point decrease in the unemployment rate.

• A) 1
• B) 2
• C) 3
• D) 6

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Definitions:

Probabilities

The mathematical likelihood of various outcomes occurring based on certain assumptions or historical data.

Systematic errors

Errors that consistently occur in the same direction every time a measurement is made, affecting the accuracy of results across a dataset.

Heuristics

Cognitive shortcuts or rules of thumb that simplify decision making by reducing complex problem-solving to simpler judgment processes.

Ethical implications

The moral consequences or considerations arising from actions, decisions, or policies in personal, professional, or organizational contexts.