If the natural rate of unemployment is 4%,what is the actual rate of unemployment if output is 4% below potential?

Name: If the natural rate of unemployment is 4%,what is the actual rate of unemployment if output is 4% below potential?
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Quizplus · Accepted Answer

According to Okun's Law, for every 1% that actual output falls below potential output, the unemployment rate increases by about 0.5%. If output is 4% below potential, the unemployment rate would increase by 2% from the natural rate, making it 6%.

If the Natural Rate of Unemployment Is 4%,what Is the Actual