Verdoorn's Law in economics is essentially the difference between fiscal policy and estimated GDP within a substantiated set of circumstances. If the latter falls between 1% and 5% it is said to be out of proportion and thus disqualifying it from Verdoorn's Law. Economics (deriving from the Greek words οίκος [oikos], house, and νέμω [nemo], rules hence household management) is the social science that studies the allocation of scarce resources to satisfy unlimited wants. ... Fiscal Policy is the economic term which describes the behaviour of governments in raising money to fund current spending and investment for collective social purposes and for transfer payments to citizens and residents of the territory for which the government is responsible. ...