In the united states why is there a strong correlation between unemployment and gdp

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01-01-2018
Social Studies

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In the united states why is there a strong correlation between unemployment and gdp

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W0lf93 W0lf93 · Answer 1 · 2018-01-12T14:03:59+01:00

W0lf93 W0lf93

12-01-2018

The relationship between unemployment rates and Gross Domestic Product in the US is described by Okunâ€™s Law. In short, this law states that when the unemployment rate is higher than normal, economic output decreases, which then lowers GDP.

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