Question

Empirically output growth 1% above normal for one year leads to a ________ in the employment rate.

Answer 1

Empirically output growth rate 1% above normal for one year leads to a INCREASE in the employment rate.

because, when the output growth rate is 1% above, then the economy output or GDP has been increase over a period of time and this can be achieved through when high labor work force is applied . therefore, more labor is employed and we can say that unemployment is fall. and OKUN's Law tell that , there is a positive relation between output and employment. when output increase , employment also increases.