In 2020, the unemployment rate fluctuated sharply from 3.5 percent at the beginning of the year, to 14.8 percent in April, to 6.7 percent by the end of the year.

On average the unemployment rate in 2020 was 8.1 percent. This compares to an average unemployment rate of 3.7 percent in 2019. Use Okun’s Law to predict the increase in the rate of unemployment, recalling that GDP growth was -3.5 percent in 2020. Compare the prediction of Okun’s Law to the actual change in unemployment.