Okun's law

From Wiktionary, the free dictionary
Jump to navigation Jump to search

English

[edit]
English Wikipedia has an article on:
Wikipedia

Etymology

[edit]

Named after Arthur Melvin Okun, who proposed the relationship in 1962.

Proper noun

[edit]

Okun's law

  1. (economics) An empirically observed relationship between unemployment and losses in a country's production. The "gap version" states that for every 1% increase in the unemployment rate, a country's GDP will be roughly an additional 2% lower than its potential GDP. The "difference version" describes the relationship between quarterly changes in unemployment and quarterly changes in real GDP.