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  2. Okun's law - Wikipedia

    en.wikipedia.org/wiki/Okun's_law

    Okun's law is an empirical relationship. In Okun's original statement of his law, a 2% increase in output corresponds to a 1% decline in the rate of cyclical unemployment; a 0.5% increase in labor force participation; a 0.5% increase in hours worked per employee; and a 1% increase in output per hours worked (labor productivity).

  3. Phillips curve - Wikipedia

    en.wikipedia.org/wiki/Phillips_curve

    Similar patterns were found in other countries and in 1960 Paul Samuelson and Robert Solow took Phillips' work and made explicit the link between inflation and unemployment: when inflation was high, unemployment was low, and vice versa. [12] Rate of Change of Wages against Unemployment, United Kingdom 1913–1948 from Phillips (1958)

  4. Misery index (economics) - Wikipedia

    en.wikipedia.org/wiki/Misery_index_(economics)

    The BMI takes the sum of the inflation and unemployment rates, and adds to that the interest rate, plus (minus) the shortfall (surplus) between the actual and trend rate of GDP growth. In the late 2000s, Johns Hopkins economist Steve Hanke built upon Barro's misery index and began applying it to countries beyond the United States.

  5. The political economy of inflation and its trade off for ...

    www.aol.com/political-economy-inflation-trade...

    The best study of the inflation-unemployment trade-off finds that an increase in unemployment would reduce inflation by about one-third of 1%. Most other studies are in this ballpark.

  6. Output gap - Wikipedia

    en.wikipedia.org/wiki/Output_gap

    The calculation for the output gap is (Y–Y*)/Y* where Y is actual output and Y* is potential output. If this calculation yields a positive number it is called an inflationary gap and indicates the growth of aggregate demand is outpacing the growth of aggregate supply—possibly creating inflation; if the calculation yields a negative number it is called a recessionary gap—possibly ...

  7. Natural rate of unemployment - Wikipedia

    en.wikipedia.org/wiki/Natural_rate_of_unemployment

    Milton Friedman argued that a natural rate of inflation followed from the Phillips curve.This showed wages tend to rise when unemployment is low. Friedman argued that inflation was the same as wage rises, and built his argument upon a widely believed idea, that a stable negative relation between inflation and unemployment existed. [11]

  8. Do Nominal Interest Rates Calculate for Inflation? - AOL

    www.aol.com/nominal-interest-rates-calculate...

    Inflation, which affects the purchasing power of money over time, is also not taken into account by nominal interest rates. In economics, the nominal interest rate is the rate unadjusted by the ...

  9. Column: Should we raise unemployment to fight inflation? No ...

    www.aol.com/news/column-raise-unemployment-fight...

    Taking steps to quell inflation by rolling back employment would cause unnecessary hardship for millions, with little gain to show for it.