L19 - Okun's Law | Conjunto de Fichas

Pregunta	Respuesta
What is Okun's Law?	Each increase of 1% of CYCLICAL UNEMPLOYMENT is associated with 2% percentage point increase in the OUTPUT GAP, measured in relation to TOTAL OUTPUT.
Okun's Law: Formula for Output Gap relative to Y* (potential output)	(Y - Y) / Y = -2 (u - u*)
Okun's Law: Formula for Output Gap	Y - Y* = -2 (u - u) Y
Okun's Law: Formula for Actual Output	Y = Y* -2 (u - u) Y
What does Y, Y, u & u stand for?	Y = Output Y* = Potential Output u = Unemployment Rate u* = Natural Rate of Unemployment

L19 - Okun's Law

	Creado por Sophia Lynch hace alrededor de 6 años