Which of the following is an appropriate expression for the Okun's Law (1962), as proposed by Ben Bernanke with data for the US:

Question

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The question asks which expression matches Okun's Law (1962) as used by Ben Bernanke with US data.
Option 1: ΔY/Y = 3 + 2 Δu. This form has a positive sign in front of Δu, suggesting increases in unemployment would raise output growth, which contradicts the empirical relationship where higher unemployment is associated with lower output. Therefore this option is inconsistent with Okun's law.
Option 2: ΔY/Y = 2 − 3 Δu. Here the constant term is 2 and the unemployment term has a coefficient of −3. While the negative sign is appropriate, the magnitudes differ from the standard close-to-3% intercept and a roughly −2 relationship between Δu and ΔY/Y used in later literature, making this option incorrect given typical Bernanke-era specifications.
Option 3: ΔY/Y = 3 − 2 Δu. This option matches the conventional Okun's law form reported in early literature and used in US data, with a roughly 3% intercept and a coefficient around −2 for Δu, reflecting that higher unemployment reduces growth. This aligns with the standard empirical relationship.
Option 4: ΔY/Y = 2 + 3 Δu. This has both an intercept of 2 and a positive 3 times Δu, which is inconsistent with the established inverse relationship between unemployment changes and output growth; thus it is incorrect.
In summary, the only expression that correctly captures the typical negative relationship between unemployment changes and output growth, with plausible intercept and slope values used in Okun's law applications to US data, is option 3: ΔY/Y = 3 − 2 Δu.

Which of the following is an appropriate expression for the Okun's Law (1962), as proposed by Ben Bernanke with data for the US:单项选择题

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