Map of weather for Note that the natural rate of unemployment is typically greater than zero as it takes into account such phenomena as frictional and structural UNEMPLOYMENT. The parameter k is greater than zero and indicates the extent to which the inflation rate is associated with the deviation of the actual unemployment rate from the natural rate of unemployment. In practice, the parameter k is a coefficient that must be estimated. Once estimated, the magnitude of k reveals information about how responsive the current inflation rate is to a deviation of the current unemployment rate from the natural rate of unemployment. Larger values of k indicate more responsiveness while a smaller value of k would indicate less responsiveness. Thus, whenever the unemployment rate is unusually high, which would be the case when u > u*, there is pressure on prices in the economy to rise. On the other hand, if the unemployment is unusually low, there is a tendency for prices to fall or, at least for the inflation rate to become smaller. Map of weather 2016.