Empirical evidence for Canada suggess that if actual GDP grows by 2 percent a year and potential GDP grows by 3 % a year:

A. the unemployment rate will be unchanged

B. the unemployment rate will fall by 1 percentage point

C. the unemployment rate will rise by 1/2 of one percentage point

D. the economy will experience and inflationary gap

Could you give a reason why the correct answer is C?

Thank you!