chapter  13
13 Pages

The robustness of Okun’s law – evidence from Mexico: a quarterly Validation, 1985.1–2006.4: Eduardo Loría and Leobardo de Jesús

ByEDUARDO LORÍA AND LEOBARDO D E JESÚS

The failure to use one year’s potential fully can influence future potential GNP: to the extent that low utilisation rates and accompanying low profits and personal incomes hold down investment in plant, equipment, research, housing, and education, the growth of potential GNP will be retarded.