Answer to Question #227519 in Macroeconomics for Tharushi

Question

The relationship between the change of real output and the unemployment rate in the US
economy was examined by Arthur M. Okun (1928-1980). How was the theory of
business cycle placing an important position in his work? Elaborate.

Answer 1

Through the theory of business cycle, the writer may be able to identify the benefits generated by unemployment rate and change in the real output. Several economic activities need to be done based on the relationship which are basically highlighted in the theory of business cycle.