Project Title
The Relationship between Real gross national product and Unemployment in
Greece in Relation to Okuns Law
Country Examined,Greece
Greece
GNP Un
1981-1.61.8
1982-1.11.8
1983-1.11.3
198420.1
19852.5-0.2
19860.5-0.4
1987-2.3-0.1
19884.30.1
19893.8-0.1
19900-0.3
19913.10.7
19920.70.8
1993-1.60.7
199420.3
19952.10.3
19962.40.4
19973.60.2
19983.41
19993.41.2
20004.5-0.8
20014.2-0.5
20023.4-0.4
20035.9-0.6
20044.6-0.8
20052.2-0.6
20064.5-1
20074.5-0.6
20082-0.6
Figure 1
1.Real Growth Rate in GDP and reposition in unemployment, 1981 to 2008.
The table in Figure 1 shows the existent harvest rate (GNP) and change in unemployment figures over the close 1981 to 2008.
Data obtained from the European Economy, European Commission website:
http://ec.europa.eu/economy_finance/publications16106_en.pdf
Okuns Law states that if the real GDP is increased by virtuoso point, the actual rate of unemployment decreases by 2-3%.
2.The Business Cycle
Figure 2
The median(a) process rate in Greece for 1981 to 2008, shown in Figure 2, is 2.2% which is let loose in comparison with other EU countries.
For example, average growth rate in Luxembourg during this time was 4.6%. In Greece, growth in this period never really rules above 4%. During periods of growth from 1997 to 2007 (with the exception of 2005), although unemployment fell during these years, it was not of any portentous nature and never more than 1% which would indicate these periods as overheating. From the beginning of the 1980s, Greece experienced several periods of decline, overcooling, in
their growth, where it a good deal fell below 0% together with increasing unemployment. Although in this period there were times of growth, it was erratic at top hat and did not stabilise until 1994.
Figure 3
The scatter plot in figure 3 plots the change in unemployment against...If you want to get a full essay, order it on our website: Orderessay
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