Solved IB ACIO Question
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Q · Poverty and Unemploymentmoderate · 45s
Okun’s law describes an empirical relationship between:
TopicPoverty and Unemployment
Question Typemultiple choice
Difficultymoderate
Marking+1 / −0.33
Test Duration30 min
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Meaning: Okun’s law links short-run changes in unemployment with deviations of GDP from potential.Correct Option Justification: B is correct; it states a negative relation between growth and unemployment.Incorrect Options:A. Phillips curve links inflation and unemployment, not Okun.B. —C. Poverty and inequality have multiple channels but not via Okun’s formulation.D. Savings-investment is captured by macro identities, not Okun’s law.
Final Answer: Option B - GDP growth and unemployment