Law applies to a particular economy

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Imagine that we know that Okun's Law applies to a particular economy, let's call it "Messi-land". Suppose we are told that over a certain period employment in Messi-land grew by 2% while over the same period the labour force in Messi-land grew by 3%. Assume that the natural rate of unemployment in Messi-land has not changed over the period. What can we say must have happened to the output gap in Messi-land over the period? Has it risen? Fallen? Remained the same? Can't say? Explain your answer fully. 

Reference no: EM131196035

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