Okun's Law
Okun's Law is an economic principle that describes the relationship between unemployment and economic growth. Specifically, it suggests that for every 1% decrease in the unemployment rate, a country's Gross Domestic Product (GDP) will increase by about 2%. This relationship highlights how job creation can drive economic expansion.
The law was formulated by economist Arthur Okun in the 1960s and has been used to understand the impact of unemployment on the economy. While it provides a useful guideline, the exact relationship can vary based on different economic conditions and factors influencing the labor market.