Based on Okun's rule of thumb, if you forecast that the output gap will decline from 0% to -3%, the unemployment rate will:

Name: Based on Okun's rule of thumb, if you forecast that the output gap will decline from 0% to -3%, the unemployment rate will:
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Okun's rule of thumb suggests that for every 1% increase in the output gap, the unemployment rate will rise by 0.5%. Therefore, if the output gap declines by 3%, the unemployment rate will rise by 1.5%.

Based on Okun's Rule of Thumb, If You Forecast That