We know that when there is unemployment

We know that when there is unemployment - , .But, ?...

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We know that when there is unemployment, the economy is not producing at full output  since there are people who are not working. But, what exactly is the relationship  between unemployment and national output or GDP? How much would we expect the  GDP to increase if unemployment fell 1%? These are useful and important questions to  ask when trying to understand the costs of unemployment.  An economist named Arthur Okun looked at the relationship between unemployment  and national output over the past 50 years. He noticed a general pattern and stated an  equation to explain it. His equation, Okun's Law, relates the percentage change in real  GDP to changes in the unemployment rate. In particular, the equation states:  % change in real GDP = 3% - 2 x (change in unemployment rate) 
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