Glossary · Macro · Unemployment

Okun's law

The rule of thumb linking output to unemployment: each percentage point of unemployment above the natural rate goes with output roughly 2 percent below potential. It is a regularity in the data rather than a law of nature.

Related terms

More from unemployment

Definitions are the start

See the term used, not just defined.

The full course teaches every term in context, with worked examples, interactive graphs and practice questions that remember what you get wrong.