If the natural rate of unemployment is 6%,what is the actual rate of unemployment if output is 2% above potential?

Question

Quizplus · Accepted Answer

When output is above potential, the actual unemployment rate is typically below the natural rate due to increased demand for labor. Okun's Law suggests that for every 1% increase in output above potential, unemployment decreases by about 0.5%. Therefore, with output 2% above potential, unemployment would be approximately 1% below the natural rate, making it 5%.

If the Natural Rate of Unemployment Is 6%,what Is the Actual