If the structural unemployment rate is 3 percent,the frictional unemployment rate is 2 percent,and the current unemployment rate is 6 percent,then the economy is in a recessionary gap.

Question

Quizplus · Accepted Answer

A recessionary gap occurs when the actual unemployment rate (6%) is higher than the natural rate of unemployment, which is the sum of structural (3%) and frictional (2%) unemployment, totaling 5%.

If the Structural Unemployment Rate Is 3 Percent,the Frictional Unemployment