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.
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: https://brainly.com/question/18760477
#SPJ1
