High Quality Content by WIKIPEDIA articles! In economics, Okun`s law is an empirically observed relationship relating unemployment to losses in a country`s production first quantified by Arthur M. Okun. The "gap version" states that for every 1% increase in the unemployment rate, a country`s GDP will be at an additional roughly 2% lower than its potential GDP. The "difference version" describes the relationship between quarterly changes in unemployment and quarterly changes in real GDP. The accuracy of the law has been disputed. The name refers to economist Arthur Okun who proposed the relationship in 1962.