Okun's Law
A relationship between an economy's GDP gap and the actual unemployment rate. Investopedia Says:
The relationship is represented by a ratio of 1 to 2.5. Thus, for every 1% excess of the natural unemployment rate, a 2.5% GDP gap is predicted. Related Terms:
Economics
Frictional Unemployment
Full Employment
GDP Gap
Gross Domestic Product - GDP
Inflation
Natural Unemployment
Phillips Curve
Structural Unemployment |