This video will explain the meaning of Okun's law. Named after economist Arthur Okun, Okun's law pertains to the relationship between the U.S. economy's unemployment rate and its gross national product. Okun's law states that for every 1 percent decrease in unemployment, GDP will increase by 2 percent. Okun's law is specific to the U.S. economy and only applies when the unemployment rate is between 3% and 7.5%. To learn more about what Okun's law is, watch this video.