How Useful Is Okun's Law?

How Useful Is Okun's Law?

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From the beginning of 2003 through the first quarter of 2006, real gross domestic product in the U.S. grew at an average annual rate of 3.4% As expected, unemployment during the period fell. Over the course of the next year, average growth slowed to less than half its earlier rate -- but unemployment continued to drift downward. This situation presented a puzzle, who expected the unemployment rate to increase as the economy slowed. This negative correlation between GDP growth a unemployment has been named AiOkunAis law.Ai This article considers the usefulness of OkunAis law for policymakers a economists. OkunAis relationship can be useful as a forecasting tool -- provided that one takes its instability into account. Charts a tables.The instruction guide defines a public school as aquot;any school or college controlled and supported by a local, county, State, ... kindergarten, and schooling which leads to an elementary school certificate, high school diploma, or college degree.

Title:How Useful Is Okun's Law?
Author:Edward S. Knotek
Publisher:DIANE Publishing - 2008-05


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