Yes, that is correct.
If we have a variable in absolute deviation, example
Unemployment gap = actual unemployment rate - equilibrium unemployment rate
Then, would a standard error = 0.1 imply that the unemployment gap rise by 10 percent points?
We are running in circles. Again, if the unemployment gap is measured in percentage points, then absolute deviations imply the IRFs are in percentage points as well.
Just to clarify, I said that the unemployment gap is measured in absolute deviations, not in percent points. However, you mentioned that “unemployment gap is measured in percentage points”. Are they the same?
Unemployment RATES are always measured in percentage points.
Ah, yes, you’re right. Thanks