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Edited by Telec:
2/28/2013 12:51:50 PM
17
Which is more important - GDP or unemployment?
You can gear a policy to help with GDP growth or with unemployment. Which do you choose?
(For the sake of argument, assume that the relative improvement is approximately the same, on whatever scale you choose to use)
And what if the policy which helped unemployment would damage GDP?
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Edited by HurtfulTurkey: 2/28/2013 3:26:06 PMUnemployment. More labor means businesses are making more money and can afford to pay more workers, so it's easy to assume GDP is simultaneously increasing. [quote]And what if the policy which helped unemployment would damage GDP?[/quote] Then Okun's Law is violated and something else is decreasing GDP which needs to be addressed.
