Tuesday, February 9, 2016

GDP Gap

GDP Gap- the amount by which actual GDP falls short of potential GDP.

Okan's Law- for every 1% in which actual employment exceeds the natural rate of unemployemnt (NRU) a GDP Gap of about 2% occurs.

Rule of 70- is used to determine how many years it will take for a value to double given a paticular annual growth rate.

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