Okun's Law

(redirected from Okuns Law)

Okun's Law

A theory stating that for every 1% increase in the unemployment rate, a country or region loses 2.5% potential GDP growth. See also: GDP.
References in periodicals archive ?
The theoretical background for the Philips curve hypothesis is premised on the wage curve model, the mark-up pricing rule and adaptive expectation model, and Okuns law (Harris and Sylverstone, 2001:1).