Suppose Okun's law holds and a one percentage point increase in the unemployment rate reduces real output by 2% of full-employment output. The expectations-augmented Phillips curve is given by It = ne - 2.5 (u - 0.04). Suppose It = 0.08 and me = 0.03. i. What is the natural rate of unemployment? (Round to TWO decimal places) [1 mark] ii. What is the actual rate of unemployment? (Round to TWO decimal places) [1 mark] iii. How much is actual GDP compared with full-employment GDP? (express your value as a percentage and indicate weather its higher, lower, or unchanged) [1 mark]