Suppose economists were able to measure frictional unemployment as 3 percent, cyclical unemployment as 2 percent, and structural unemployment as 4 percent. Then we would know that the NAIRU is and the actual unemployment rate is .
A) 6 percent; 5 percent
B) 5 percent; 9 percent
C) 7 percent; 9 percent
D) 6 percent; 6 percent
E) 7 percent; 7 percent
Correct Answer:
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