On Jul 31, 2013, at 12:46 PM, Jim Devine <[email protected]> wrote:

> the two are linked, by Okun's "law." If the market economy (as
> measured using the old GDP) grows fast enough in real terms to cancel
> out the normal increase in unemployment due to labor force growth and
> labor productivity increases, the official (U3) unemployment rate
> falls. If it grows slowly or falls, U3 rises.

The relationship is noisy and changes over time. Raghu's point is a good one. 
GDP is useful but what matter more are income and the material benefits it buys.

Doug
_______________________________________________
pen-l mailing list
[email protected]
https://lists.csuchico.edu/mailman/listinfo/pen-l

Reply via email to