Question

If the national unemployment rate decreased at an annual rate of 2% per year for three consecutive years, then the rate decreased by 6% over the three-year period.

Answer 1

If the national unemployment rate decreased at an annual rate of 2% per year for three consecutive years, then the rate decreased by 5.88% over the 3-year period.

What is the rate of decrease over the 3-year period?

The rate of decrease would compound over the 3-year period. Thus, in order to determine the total rate of decline, the yearly rate of decline cannot be added.

Total rate of decline = (1 - yearly rate of decline)^(number of years)

(1 - 0.02)^3 = 5.88%

To learn more about compounding, please check: brainly.com/question/18760477

#SPJ1