Categories
Investments glossary

Okun’s Law

Okun’s law pertains to the relationship between the U.S. economy’s unemployment rate and its gross national product (GNP). It states that when unemployment falls by 1%, GNP rises by 3%. However, the law only holds true for the U.S. economy and only applies when the unemployment rate is between 3% and 7.5%.

Click to rate this post!
[Total: 0 Average: 0]

Leave a Reply

Your email address will not be published. Required fields are marked *