Based on Okun's rule of thumb, if you forecast that the output gap will decline from -1% to -3%, the unemployment rate will:

Name: Based on Okun's rule of thumb, if you forecast that the output gap will decline from -1% to -3%, the unemployment rate will:
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Okun's rule of thumb states that a 1% change in the output gap leads to a 2% change in the unemployment rate in the opposite direction. Therefore, a decline in the output gap from -1% to -3% would lead to a rise in the unemployment rate by 1%.

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