Abstract
Instead of the more common unemployment rate, the time series data of the level of US unemployment is used together with US real GNP, and later also with the US money stock, to identify a bivariate and trivariate structural model. The model is then used to examine the interaction of the unemployment level with the real GNP in the business cycle frequencies. The commonly perceived Okun's law is shown to disappear in the trivariate model.
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