Okun's law states that every 1% increase in unemployment results in a 2% decrease in this quantity's potential. At full employment, it equals aggregate demand. Its namesake deflator is the ratio of its nominal value to its real value, and is a measure of inflation. It can be found using the income f
Okun's law states that every 1% increase in unemployment results in a 2% decrease in this quantity's potential. At full employment, it equals aggregate demand. Its namesake deflator is the ratio of its nominal value to its real value, and is a measure of inflation. It can be found using the income formula or the expenditure formula, which states that it equals "C + I + G + NX." An indicator of standard of living is this quantity divided by population, its "per capita" version. For 10 points, name this economic measure of total production within a single country, not to be confused with GNP.
Okun's law states that every 1% increase in unemployment results in a 2% decrease in this quantity's potential.
Gross Domestic Product [do not accept "Gross National Product"] 