The wiki of carlos rodrigo

Okun’s law

Okun’s law is an empirically observed relationship between unemployment and losses in a country’s production. It is named after Arthur Melvin Okun, who first proposed the relationship in 1962.The «gap version» states that for every 1% increase in the unemployment rate, a country’s GDP will be roughly an additional 2% lower than its potential GDP. The stability and usefulness of the law has been disputed.