Assume the natural rate of unemployment in the U.S.economy is 5 percent and the actual rate of unemployment is 9 percent.According to Okun's law, the negative GDP gap as a percentage of potential GDP is

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Okun's law suggests that for every 1% increase in the unemployment rate above the natural rate, a country's GDP will be roughly an additional 2% lower than its potential GDP. Here, the unemployment rate is 4% above the natural rate (9% - 5%), so the GDP gap is approximately 8% (4% * 2%).

Assume the Natural Rate of Unemployment in the U