Question

in okun's law an output growth rate of 1% above normal output growth rate leads to only 0.4% reduction in unemployment and a 0.4% reduction in the rate in the unemployment leads to only 0.6% increase in employment

Answer 1

Answer:

Okun's law looks at the statistical relationship between a country's unemployment and economic growth rates. Okun's law says that a country's gross domestic product (GDP) must grow at about a 4% rate for one year to achieve a 1% reduction in the rate of unemployment.