Question
Macroeconomics Question on Inflation and unemployment
If the difference between actual GDP and the trend output varies inversely with the difference between actual unemployment rate and the natural rate of unemployment, then such a relationship is called the
A
Okun's law
B
New Keynesian aggregate supply curve
C
Taylor Rule
D
New Keynesian Phillips curve
Answer
Okun's law
Explanation
Solution
The correct option is (A) : Okun's law.