monique66
Active Member
- Joined
- May 11, 2004
- Messages
- 1,475
The textbook says 'Australia needs growth rates of around 3.5% or higher in order to make progress on reducing unemployment. This is because unemployment will only be reduced if economic growth exceeds the total of productivity growth plus growth in the labout force (this relationship is known as Okum's law)' I understand how unemplyment relates to economic growth but i don't understand the bit in bold. Anyone care to explain?