In February 2012, the Bureau of Labor Statistics calculated the unemployment rate to be 8.3%. If frictional unemployment was 3.1% and structural unemployment was 3.2%, then the natural rate of unemployment was:
A) 4.5%.
B) 2.0%.
C) 1%.
D) 6.3%.

Question

Quizplus · Accepted Answer

The natural rate of unemployment is the sum of frictional unemployment and structural unemployment.

Natural rate of unemployment = frictional unemployment + structural unemployment

Natural rate of unemployment = 3.1% + 3.2% = 6.3%

Therefore, the best choice is D.

In February 2012, the Bureau of Labor Statistics Calculated the Unemployment