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Investments glossary

Okun’s Law


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Quotes of the day:

Stay away from needle drugs. Richard Nixon is the only dope worth shooting.

— Abbie Hoffman

Okun’s law pertains to the relationship between the U.S. economy’s unemployment rate and its gross national product (GNP). It states that when unemployment falls by 1%, GNP rises by 3%. However, the law only holds true for the U.S. economy and only applies when the unemployment rate is between 3% and 7.5%.


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